Abbey races ahead in the mortgage market

Abbey races ahead in the mortgage market


Big high street bank Abbey is expected to announce it has beaten Halifax to first place as the country’s biggest mortgage lender later today.


Halifax has long been the leader but with its owner HBOS expecting to see profits drop by more than 50% to £1.3 billion, Spanish owned Abbey is expected to make a swift leap into first place as it has won more than 25% of all new mortgages sold in the first six months of 2008.


Abbey is claimed to have had such a high share of the market this year due to its lack of exposure to the complex web of mortgage-backed investments that some of its rivals have found themselves tangled up in. In an attempt to get back to being the top dog, Halifax is said to be cutting its rates for first time buyers.


Whilst other lenders have been dubious about mortgage lending during the current economic climate, Abbey trebled its number of new mortgages from 4.9 per cent last year to 15.9 per cent in the first few months of 2008.

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