Buy To Let
Lloyds Banking Group lent just under one in five mortgages last year
Guest Author:
Anna SagarLloyds Banking Group tops the table as the UK’s biggest residential mortgage lender, with gross lending increasing to £55.9bn for 2021, up 20% from £46.5bn in the previous year.
According to the latest figures from UK Finance, Lloyds Banking Group’s market share remained roughly static at 18%, which is marginally down from 19% in 2020.
The second largest residential lender was Natwest, with £36.1bn in gross mortgage lending and 12% in market share. This compares to £31.6bn in gross lending and 13% market share in 2020.
Nationwide secured the third slot, with £35.4bn in gross mortgage lending and 11.5% market share, up from £27.5bn of gross mortgage lending and 11.2% market share in the prior year.
Lender | Rank (2021) | Lending (£bn) (2021) | Market share (2021) | Rank (2020) | Lending (£bn) (2020) | Market share (2020) |
Lloyds Banking Group | 1 | 55.9 | 18.1% | 1 | 46.5 | 18.9% |
Natwest Group | 2 | 36.1 | 11.7% | 2 | 31.6 | 12.9% |
Nationwide BS | 3 | 35.4 | 11.5% | 3 | 27.5 | 11.2% |
Santander UK | 4 | 33.2 | 10.8% | 4 | 26.6 | 10.8% |
Barclays | 5 | 33.0 | 10.7% | 6 | 22.2 | 9.0% |
HSBC Bank | 6 | 27.3 | 8.9% | 5 | 24.4 | 9.9% |
Coventry BS | 7 | 10.1 | 3.3% | 8 | 7.0 | 2.8% |
Yorkshire BS | 8 | 10.0 | 3.2% | 9 | 6.9 | 2.8% |
Virgin Money | 9 | 9.8 | 3.2% | 7 | 7.8 | 3.2% |
TSB | 10 | 9.2 | 3.0% | 10 | 6.1 | 2.5% |
(Source: UK Finance) |
There was movement in the top 10 this year, as Barclays and Coventry Building Society’s rose one place each to fifth and seventh respectively.
Barclays gross mortgage lending increased by around £10bn year on year to £33bn and its market share increased by nearly two percentage points to 10.7%.
Coventry Building Society’s gross mortgage lending in 2021 grew by more than £3bn to £10.1bn. Its market share also grew slightly from 2.8% in 2020 to 3.3% in 2021.
HSBC and Yorkshire Building Society both fell by one place to sixth and eighth respectively.
HSBC’s market share contracted to 8.9% from 9.9%, despite its lending growing from £24.4bn to £27.3bn.
Yorkshire Building Society’s lending increased by around £3bn year on year to £10bn in 2021. Market share rose slightly to 3.2%, up from 2.8% previously.
Virgin Money dropped two places from seventh to ninth. Gross mortgage lending for 2021 increased from £7.8bn in 2020 to £9.8bn, while its market share remained stable at 3.2%.
Nationwide secures top slot as biggest buy-to-let lender
Nationwide was the largest buy-to-let lender in the UK for 2021, reporting around £7.43bn in 2021, up from £6.56bn in the previous year.
However, the lender’s market share fell slightly from 17% in 2020 to 15.8% in 2021.
Lloyds Banking Group came second, down from top spot in 2020, with gross mortgage lending falling slightly from £7.12bn in 2020 to £6.75bn for 2021. Its market share also dropped from 18.4% to 14.3% in 2021.
Lender | Rank (2021) | Lending (£bn) (2021) | Market share (2021) | Rank (2020) | Lending (£bn) (2020) | Market share (2020) |
Nationwide BS | 1 | 7.43 | 15.8% | 2 | 6.56 | 17% |
Lloyds Banking Group | 2 | 6.75 | 14.3% | 1 | 7.12 | 18.4% |
Santander UK | 3 | 4.25 | 9.0% | 5 | 2.62 | 6.8% |
Coventry BS | 4 | 3.29 | 7.0% | 3 | 2.71 | 7% |
One Savings Bank | 5 | 2.89 | 6.1% | 6 | 2.29 | 5.9% |
Barclays | 6 | 2.38 | 5.0% | 4 | 2.68 | 6.9% |
Natwest Group | 7 | 2.15 | 4.6% | 8 | 1.53 | 4.0% |
Virgin Money | 8 | 2.11 | 4.5% | 7 | 1.55 | 4.0% |
Paragon | 9 | 1.72 | 3.6% | 9 | 1.09 | 2.8% |
Foundation Home Loans | 10 | 1.16 | 2.6% | 17 | 0.45 | 1.2% |
(Source: UK Finance) |
Santander jumped two positions from fifth to third, with buy-to-let gross mortgage lending nearly doubling to £4.25bn year on year and its market share rising from 3% to 9%.
One Savings Bank and Natwest both climbed up the ranks by one position to fifth and seventh respectively, increasing their market share and gross mortgage lending.
Coventry and Virgin Money fell one position each to eight and fourth, although both reported a growth in gross mortgage lending.
Paragon was a non-mover in ninth place, with gross mortgage lending totalling £1.72bn, up from £1.09bn in 2020. The lender’s market share increased from 2.8% to 3.6%.
Foundation Home Loans rounded out the top 10, jumping up seven positions from 2020 and replacing Leeds Building Society, which fell to 16 in the rankings.