In an interview with The Guardian, Head of Home Lending Moray McDonald revealed ambitious plans to significantly improve RBS’ market share in the mortgage market.
The UK’s fifth biggest lender, currently Government-owned, aims to see the share of the market grow to “mid-teens”, with the help of plus 90 per cent LTV lending.
RBS, a Bank which also boasts NatWest to its umbrella, has begun to recruit a number of mortgage advisers in an effort to add substance to the scheme.
Speaking in the interview, Moray McDonald said: “There is obviously a risk of [the market] overheating. But the government is looking to pull forward borrowing that would have taken place anyway in a few years' time. If this means someone is able to get on with their lives, rather than wait, that will be a good outcome."
David Hollingworth of mortgage broker London & Country said RBS had launched competitive rates that backed up its intention, including a two-year fixed-rate mortgage at 1.74 per cent with a £1,995 fee. "These big fees and low rates are about grabbing attention," he said. "For some period they have been out if the game and it is great to have them back and with more appetite."
In 2011, figures released by the Council of Mortgage Lenders (CML) revealed RBS had an overall share of the market of just 10.4 per cent, leaving many critics doubtful over Mr McDonald’s comments.
The Bank has launched an advertising campaign encouraging would-be borrowers to ask for loans and reduced rates on loans for first-time buyers and movers. It was an early user of the government's Funding for Lending scheme, launched last August, withdrawing £750 million in the third quarter of 2013.
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