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Lloyds gross mortgage lending decreases 13pc

Lloyds Banking Group reported gross mortgage lending of £12.9bn for the first six months of the year, a 13% drop from the £14.9bn lent over the same period in 2010.

Yuan Phoon, 4 August, 2011

The £12.9bn in gross mortgage lending leads Lloyds' into an estimated mortgage market share of over 20% in the first half of 2011, down 3% from the 23% share in H1 2010.

The proportion of Lloyds' mortgage portfolio with an indexed loan to value of greater than 100% decreased to 12.2%, while the value of the portfolio with an indexed LTV greater than 100% and were more than three months in arrears decreased by £0.1bn however still represents 0.9% of the portfolio.

The average LTV on new mortgage lending in the first half of the year was 61.3%, up from 60.9% in H1 2010.

Just over half of Lloyd's portfolio, 52% are on their standard variable rate. Lloyds said it expects this to "rise only modestly" in the second half of 2011.

The bank's half-year report also revealed a £3.3bn loss for the first six months of the year, attributing the cost of their payment protection insurance provision as a major contributor for the loss.

Excluding one-off expenses, the bank reported a decline in pre-tax profit to £1.1bn from £1.6bn in 2010.

António Horta-Osório, group chief executive at Lloyds, said: "We delivered a resilient first half performance, despite the ongoing challenges of economic and regulatory uncertainty, and have made substantial progress in restructuring and de-risking the group.

"I expect the actions we are taking, as detailed in our Strategic Review announcement, to enable us to create a high performance organisation over time and deliver the best from our franchise for both our customers and our shareholders."

"The group continues to prioritise active support for the UK's economic recovery, including through the range of services we provide to our business and mortgage customers."

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