RBS mortgage lending up 44%
This figure represents a 44% increase in lending on the first half of 2013 and the bank estimates it would have a market share of 9.9% based on this figure.
Some £873m of this lending was at 90% LTV or higher, reflecting the bank’s early entry into the Help to Buy mortgage guarantee scheme. This meant the average LTV of new mortgage business has risen sharply from 62.7% to 68.2% in the last six months.
RBS’ overall mortgage portfolio stood at £102bn at the end of June following growth of 2.5% in the previous six months. This portfolio also includes £10bn of residential buy-to-let lending.
Chief executive Ross McEwan said the bank still had challenges on the horizon: “There is progress on all of our key priorities – capital is stronger, costs are lower and customer activity is gradually improving – although we have only just started with our programme to make it easier for customers to do more business with us.”
“But let me sound a note of caution. We are actively managing down a slate of significant legacy issues. This includes significant conduct and litigation issues that will likely hit our profits going forward.”