Challenger banks and specialist lenders increased their gross lending by some 56% in 2015, translating to a 2.9% growth in their collective market share - of 16 lenders in this category, 11 moved up the table. These include Metro Bank, whose 200% growth in lending last year saw the most rapid ascent up the table, from 24th to 16th spot.
By contrast, the established retail banks and building societies increased their gross lending by a more modest 4% and 9% respectively, with the same five lenders inhabit the top spots - Lloyds Banking Group, Nationwide, Santander, RBS, and Barclays. But, within this, the Royal Bank of Scotland increased its gross lending by 25% in 2015, moving up from fifth to fourth in the process.
The CML report concluded:
"Overall then, 2015 was a year where the mortgage market grew yet more competitive. Seen against a backdrop of a range of government policies looking to boost home-ownership, this increase in diversity and choice is clearly welcome.
Many lenders’ interim results published so far point to continuing healthy growth, in line with industry data showing lending in the first half of 2016 at its highest level since 2008.
Prospects for the mortgage market are, like any other sector of the UK economy, less certain than they were at the start of the summer. But our market has a robust and diverse base to support existing and aspiring home-owners and investors alike as we move forward."
