Santander reveals net mortgage lending up by £1.9bn

Net mortgage lending at Santander is up £1.9bn year to date to £150bn, the lender’s latest set of results revealed.

Mortgage lending balances increased £1.9bn in the first nine months of 2014, maintaining the positive momentum that kicked off in the second quarter of this year.

The average loan-to-value on new lending, including Help to Buy, was 65 per cent and 48 per cent on the stock of mortgages.

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Help to Buy includes all lending over 90 per cent LTV, and Santander revealed demand in the first nine months of 2014 was higher than expected.

Stock LTV continued to perform well, according to bosses, supported by house prices increases and better economic environment facilitating capital repayments by borrowers.

SVR mortgage loan balances fell £6.3bn in the first nine months of 2014 to £46bn.

Although the bank retained 80 per cent of customers with maturing loans on new Santander UK mortgages.

Nathan Bostock, chief executive officer of Santander UK, said he expected the decline in SVR mortgage balances to continue at a similar pace for the rest of the year.

But he pointed out competition in the mortgage market is increasing and Santander is seeing “some pressure on margins for new business approvals.”

He said this was anticipated to have some impact on results in 2015.