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Key Takeaways from Major UK Mortgage Lenders' H1 2024 Results for Mortgage Advisers

Publicly traded Major UK Banks (Lloyds, HSBC, NatWest, Barclays, Santander UK, Nationwide) release investor updates to the market on their business performance. These banks account for approximately 75% of mortgage lending in the UK.
In July and August, they released their results for the first half of 2024. Here we summarise key points of interest for UK Mortgage Advisers, across these lenders' strategy and technology updates and the outlook for the UK mortgage market.
Results
Mortgage Strategy Updates
  • Barclays stated their priority is to grow in the high LTV space, following the acquisition of Kensington Mortgages in 2023
  • Lloyds disclosed that they have enhanced the integration of protection in their mortgage journey and this has increased take-up by 3 percent
  • Inorganic growth through M&A (mergers and acquisitions) has been a key factor in the sector, with the following transactions recently announced:
    March-24: Nationwide acquisition of Virgin Money
    July-24: NatWest acquisition of Metro Bank’s £2.5 billion prime mortgage portfolio
  • See the table below on mortgage lending market share movements in the first half of 2024:
Mortgage Market Share Moves
Mortgage Technology Updates
  • Barclays noted their priority to move to cloud-based systems and away from legacy technology
  • Nationwide aims to simplify switching via their Mortgage Manager platform
Mortgage Market Outlook
  • In base case economic scenarios, all lenders who publish these include decreases in the base rate through the end of 2024, and then further decreases in 2025
  • Santander noted a recent recovery in mortgage approvals, which are almost back at the average level seen in 2022
  • NatWest forecasts a gradual improvement in the lending market despite the continued impact of higher interest rates
Conclusion
The market in H1 has continued to be challenging for mortgage lenders, with lower mortgage volumes due to higher interest rates. However, as inflationary pressures ease and mortgage approvals rise, the outlook for the second half of 2024 is cautiously optimistic, with a gradual recovery expected.
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