Abbey: takes 25 percent share new net lending

Abbey National announced that it was responsible for 25 percent of all net new Mortgage lending in the three month run to September, showing the lenders strength in an ailing market.

Abbey who are owned by Spanish Bank Santander lent £10.8 billion more than recovered in repayments, this accounts for 28 percent of all extra mortgage lending this year.

Santander who recently acquired Alliance & Leicester and Bradford and Bingley’s £20 billion saving book lent £7.5 billion in the quarter, making this year’s lending to £27 billion so far.

Homeowners and small businesses are a major concern for the British government as they push for banks to start lending to each other again, in a bid to keep the credit flowing, they did this by backing them with a £500 billion bailout plan.

Although, Abbey’s financial report shows that banks have dropped their net new lending considerably so far this year, providing less than £40 billion compared to £108 billion last year.

Source: Telegraph