The data covers 97% of the total mortgage market, excluding firms with under £50 million of lending, and totals 65 lenders, up from 60 in 2016.
For 2017, gross lending totalled £257 billion, up 4% on 2016. This was lower than the 11% growth seen in 2016, but UK Finance says it has seen increased competition for business.
Growth in new lending was strongest amongst lenders ranked 21-30 in 2017, who lent £3 billion more than 2016’s 21-30 group – a growth rate of 40%.
The largest lenders saw more modest growth. Although Lloyds has continued to increase lending activity with a 7% rise compared to 2016, the next three lenders on the table (Nationwide Building Society, Royal Bank of Scotland and Santander) all saw lower volumes than in 2016, compared to the previous year and corresponding contractions in market share.
Despite this, there was no change in the top ten gross lending table, with all lenders retaining the same rankings as in 2016.
However, there was movement in the 11-20 group: Paragon climbed from 21st to 19th with a 78% increase in lending activity. Legal and General also made a sizeable jump, moving from 27th to 23rd place following a 67% increase in lending. Other lenders with significant lending growth include: Tesco Bank (71%), Metro Bank (50%), Foundation Home Loans (200%), and Pepper UK (200%).
UK Finance says that whilst all types of lenders did see an increase in their lending overall, it is the challenger banks and specialist lenders who are doing the most new business proportionately with almost a 20% increase in activity.
Looking at balances outstanding, Lloyds remains at the top of the table, despite a decrease in book size of 1%. RBS had an increase of 7% for their balances outstanding, allowing them to overtake Barclays on the table and become the lender with the fourth largest mortgage assets in the UK. Below the top five, HSBC, Coventry, Virgin Money and TSB all increased their market share of outstanding mortgage assets.
UK Finance concluded that "2017 was a good year for the mortgage market with more lenders competing for business, and gross lending continuing on an upward trend".
Earlier in the year, UK Finance predicted lending growth of 2% in 2018, but says that "lending in the early months of 2018 has, so far, outpaced our forecasts, driven largely by stronger-than-expected remortgage activity".
However it believes that uncertainties relating to the UK economy remain, and "have the potential to affect the path of lending for the rest of this year and beyond".
