UK Finance: Challengers and specialist lenders take a greater share of the market
Challenger banks and specialist lenders took a bigger share of the mortgage market in 2017 compared to the year before, UK Finance figures show.
Lenders that saw their lending levels increase include Paragon, which climbed from the 21st biggest lender to the 19th after upping gross lending by 78%.
Other players strongly increasing their lending include Legal & General (67%), Tesco Bank (71%), Metro Bank (50%), Foundation Home Loans (200%) and Pepper UK (200%).
The top 10 lenders by gross mortgage lending were unchanged, with Lloyds Banking Group leading the way, followed by Nationwide, Santander, RBS and Barclays.
The data accounts for 97% of the mortgage market.
Total lending across the market reached £257bn in 2017, a 4% increase on 2016’s total. This is lower than the 11% growth seen in 2016.
So far in 2018 mortgage lending has outpaced UK Finance’s forecast that lending would total £260bn this year.