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Tuesday 02nd of November 2010
July 31, 2009    

Abbey becomes UK’s second-biggest mortgage lender

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by Gill Montia
Abbey becomes UK's second-biggest mortgage lender

Abbey and Alliance & Leicester (A&L) are together claiming to be the UK’s second-biggest mortgage lenders, behind HBOS.

Both banks belong to Spanish group, Santander, which reported its half-year results this week.

The figures reveal that Abbey and A&L were responsible for 16.3% of the UK’s gross mortgage lending during the six months to the end of June.

The group’s UK operation also turned in a fine profit for the period, with a rise of 30%, partly as a result of its acquisition of Bradford & Bingley’s savings business.

In addition, writedowns in relation to UK mortgage lending have been minimised by Abbey’s prudent lending strategy during the housing market boom, Santander said.

The bank’s average loan-to-value ratio for new loans has remained at 60% over the past nine months.

Further expansion in the UK mortgage market is expected, particularly as B&B’s £20 billion deposit book can help Santander to expand its lending business without resorting to expensive funding.

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