Abbey Is Now The Leading Mortgage Provider In The UK
While many of the UK's main mortgage providers continue to suffer, in relative terms it is Abbey which is proving to be the star of the show. Assisted by the substantial backing of parent company Santander the UK giant has forged ahead to take number one spot in the new mortgage market with a 26% share. The move has seen the group take over from HBOS at the top of the table as rumours continue to suggest that HBOS may soon be the subject of a bid approach.
Santander has been very active in the UK market of late, recently agreeing to acquire Alliance and Leicester in a £1.3 billion deal. This will further strengthen the position of the group in the UK with suggestions that the operation will be rebranded as part of Abbey in due course. Indeed the acquisition of Abbey has proved very successful with the group contributing profits of £485 million to its parent in the first 6 months of the year (a 20% rise on the corresponding period).
Even though activity levels are substantially down on last years highs there is still strong underlying competition in the sector. Abbey has stolen a march in recent months but whether it can retain this position in the longer term remains to be seen.
Share this..
Related stories
New strategy announced to protect the Euro
After one of the most difficult weeks in the relatively short history of the Euro there are still concerns that the following weeks could be volatile to say the least. European Union leaders are locked in talks regarding tighter regulations for the budgets of all member states and a greater harmonisation of economic efficiencies across the board. So are we moving towards a European state? It lo...
Read MoreConstruction figures revised but can we believe them?
There is more confusion in economic circles with news that the Office for National Statistics has revised third-quarter construction activity from a 1.1% drop in output to a 2% increase in output. This will add 0.2% to the overall GDP figures which would indicate that the UK economy contracted by 0.2% during the third quarter of 2009 and is in fact poised for a return to positive growth in the fin...
Read MoreInvestor appetite wanes as New Look pulls float
It looks as though investor appetite for new issues is starting to weaken with the New Look IPO the third high-profile flotation to be pulled over the last week. Only a few weeks ago it would appear that demand for new issues was growing and a number of companies were looking towards the UK market to raise additional finance. So what has happened? The official reason for the postponement of the...
Read MoreRoyal Bank of Scotland announces no change in mortgage rates
The Royal Bank of Scotland, which is effectively controlled by the UK government, has today confirmed there will be no change in its variable mortgage rate. The company, seemingly going against UK government policy, has suggested that it has both an obligation to mortgage holders and savers in the UK and a reduction in the variable mortgage rate would lead to a reduction in savings rates. But does...
Read MoreUK budget deficit under extreme pressure
The revelation that the UK government had to borrow £16.1 billion to balance the books in August has caught many analysts and economists offguard. This figure is 63% higher than the same period last year and is in fact the largest shortfall since records began back in 1993. Since the beginning of the new tax year the UK government has borrowed in excess of £65 billion compared to only £26 billi...
Read More