The ‘big five’ mortgage lenders' grip on the market has loosened when it comes to business mortgages.
Small challenger banks have issued a third (32%) of the UK's business mortgages and charges in the first half of 2016 – loosening the ‘big five’ mortgage lenders' grip on the market.
The research from Avention, which monitors and analyses business information, named the likes of Metro Bank, Aldermore, AIB, Close Brothers, OneSavings Bank, Shawbrook Group and Secure Trust Bank as small banks giving the big boys a run for their money.
Challenger banks held over 50.3% of mortgages for utilities and energy companies and 46.2% for healthcare, though challengers rarely issued bank loans to companies in the finance sector.
Paul Charmatz, senior vice president of Avention’s International business, said: “Avention’s data shows the significant market share that challenger banks enjoy when it comes to corporate lending, particularly the smaller challengers.
“Avention will continue to monitor this data and re-analyse it in six months’ time.
“It will be interesting to see if our market insights continue to point to the success of challenger banks in the UK – and whether the same regional and sector trends are evident.”
