Its mortgage loan book sat at £170.8 billion at the end of June
Santander UK reported that its mortgage lending dipped by £4.4 billion in the first half of 2024, leading the bank’s profit to slump by around a third.
The UK arm of the Spanish lender said it had taken action to “prioritise profitability” over the first six months, which resulted in lower mortgage lending as well as customer deposits dropping by £5.6 billion in the period.
Its mortgage loan book sat at £170.8 billion at the end of June.
However, the business added that it saw improved new business margins and gross lending in the second quarter, in a stock market statement.
Although the bank now forecasts two bank rate cuts instead of three later this year.
The BoE’s base rate has stayed at a 16-year high of 5.25 per cent since last August, despite inflation returning to its 2 per cent target.
Santander UK posted a first-half pre-tax profit down 31 per cent to £804 million, as lenders have seen profits cut back this year from sizeable returns seen over the last two years, as the base rate has stabilised and competition in the mortgage and savings market grows.
Santander UK chief executive Mike Regnier says: Our first half financial results were in line with our expectations, with a more positive trajectory reflecting improvements in the second quarter.
He added: We are also offering competitive savings rates and improved access to mortgage financing.
The lender said credit impairment charges dropped 43 per cent in the first half due to an improved outlook for the wider UK economy.