Top Mortgage Companies

Probably the most noticeable difference shown by today's figures is the displacement of oil price concentrations. The six biggest creditors represented 61% of the overall volume of loans in 2006, before the beginning of the economic downturn. However, the withdrawal of many smaller creditors in subsequent years, together with a number of companies affected by ongoing consolidations, resulted in an increased predominance of the markets by the six biggest creditors.

By 2009, these creditors had granted an estimate of 86% of all loans. The six biggest creditors had to accept a further significant decline in their joint lender shares in 2013. In total, these companies made up 72% of total loans, compared to 76% in 2012. Please note: For the years prior to 2011, the Nationwide Building Society data shown in the chart for our major creditors have been provided on an annual reporting date base (end of April).

In this graph, estimates of the country's annual credit estimates are restated to show the country's current credit exposure. However, the development of the six biggest lenders' shares of the markets has not taken place in all directions. The Lloyds Banking Group was again the biggest creditor overall in 2013, as Table One shows. Although the TSB Banking Group (now reported separately) did not fully take over its loan operations in 2013, it raised its loan operations by 35% to £35.

This brought the company's overall slice of the pie to 20. 2%, compared to 18% in 2012. Wherever possible, total loans are reported net of portfolio purchases. The numbers are round to the next 100 million pounds and ordered on the same base. Where possible, the presentation of the numbers is based on the Group' s performance in terms of financing; last year' acquisition.

Royal Bank of Scotland numbers do not contain RBS group members Topaz Finance and Ulster Bank. The 2013 numbers for Lloyds Banking Group do not contain TSB. The 2012 numbers for Cashclays do not reflect the ING (Barlays Direct) portfolios purchased in 2013. Also the second and third strongest creditors in 2013, the Nationwide Building Society and Santander, increased their shares of the markets.

Second place nationwide Lending rose by 27% to 26. 9 billion, which boosted its share in the new credit mar ket from 14. Meanwhile Santander boosted its loans by 25% to 18.3bn and its overall portfolio from 10% to 10.4%. Santander's business growth this year has pushed it up two places, from fifth to third.

Companies ranked fourth to sixth on the ranking lists (Barclays, HSBC Bank and The Royal Bank of Scotland) all had a lower new loan penetration than in 2012, more than compensating for companies' top three profits - hence the overall decrease in the first six's penetration.

But despite the decline in the overall slice of the six biggest companies' shares, the overall amount they submitted rose sharply from £110. There is increasing day-to-day competitive pressure throughout the entire mart. In other words, we score above the point at which the credit volume is so tightly bundled that the ranking becomes much less informative (taking into account the fact that we round the credit volume to the next 100 million pounds).

In this year we receive a shortlist of the 20 best creditors, which together make up 91. 6 per cent of the overall loan volume - compared to 95 per cent in 2012. Beyond the six leading companies in our ranking, 11 out of 14 creditors showed an upward trend in credit allocation in 2013. Most of the changes were made by the Yorkshire Building Society, which boosted progress from £4.6bn in 2012 to £6.8bn or 48%.

As a result of this rapid expansion, the company increased its overall slice of the pie by 0.7%, up two places to number seven. The Skipton Building Company, Aldermore Mortgages and Kent Reliance - a sound mixture of traditional creditors and newer players in the markets - were other lending institutions outside the first six countries that showed significant year-on-year expansion.

Taken together, creditors placed 7th to 8th among senior mortgage loans valued at 34. 9 billion, 26% more than the 27. 6 billion they borrowed in 2012 (the 2012 aggregate does not include a number for TSB Banking Group, whose loans were then incorporated into the Lloyds Banking Group aggregate). However, due to the overall increase in activities over the past year, the overall lender franchise of this group of creditors remains largely stable (see Chart 2).

Please note: For years prior to 2011, the Nationwide Building Society data shown in our major creditors tables have been provided on an annual reporting base (end of April). In this graph, estimates of the country's annual credit estimates are restated to show the country's current credit exposure. Also, the proportion of loans granted by smaller creditors has increased, giving the consumer the benefit of a more healthy and even more competetive mortgage portfolio.

Indeed, the smaller lenders' activities have now reverted to the level of participating in the markets last reached before the start of the "credit crunch" (see Chart 3). Please note: For the years prior to 2011, the National Building Society data shown in our chart of the biggest creditors have been calculated on a fiscal year by fiscal year basis at the end of April.

In this graph, estimates of the country's annual credit estimates are restated to show the country's current credit exposure. Restoring lenders' previous level of activities outside the top 20 has been one of the most distinctive characteristics of the markets in recent years. In 2011, loans from companies outside the top 20 fell to less than 1% of the overall global loan population.

Since then, however, the activities of small creditors have recovered strongly and their percentage of the total creditors' shares has risen to more than 8% (pre-crisis level) in just two years. In addition, the intermediate results released so far this year by the creditors point to an even stronger deterioration in the competition situation. Our belief that smaller creditors still have both the hunger and the ability to deliver variety and selection in a markets that, at its low point in 2009, was strongly focused in the pockets of a few large companies is supported by this.

Considering the mortgage balance due (see Table Two), it is not surprising that the six top creditors are the same as those who granted the most loans in 2013. However, there was a slight decrease in the totals receivable for the six largest companies, both in real figures (from 911.9 billion to 907.1 billion) and by overall markets shares (from 71.9% to 71.1%).

Overall, the proportion of total debt of the 21 companies with the biggest mortgage portfolios rose slightly in 2013 (from 90.8% to 91.4%). Comments: For prior years, the Royal Bank of Scotland excluding RBS group members Topaz Finance and Ulster Bank has been restated to take into consideration possible merger and acquisition activity last year6.

7. Lloyds Banking Group 2013 numbers do not contain TSB.8. The 2012 numbers of Lloyds Banking Group do not contain the ING (Barlays Direct) portfolios purchased in 2013. Today's release confirms our assessment of a continued sound performance and our projections are that total loans will grow 18% this year to £208bn and then 6% to £220bn in 2015.

Recent knowledge indicates that credit will be distributed between large and small creditors, with consumer benefits from selection and competitive markets.