However, its preliminary financial results for 2005 indicated group profits, before tax, rose by 17 per cent over 2005. With concern over external credit environments, the group took the step of reigning in its market options across the five mortgage brands, operating on a model of more measured growth over the past two years. As a result, the group’s mortgage market share declined by 2 per cent during 2005.
The report shows the group still achieved gross lending figures of £60.6 billion, with its mortgage book representing an estimated 14 per cent of the market. The LTV of its existing mortgage portfolio remained stable at 43 per cent, despite lower house price inflation and equity growth in the market.
Nigel Stockton, managing director of HBOS Intermediary Mortgages, welcomed the results and reiterated the groups commitment to the intermediary sector, highlighted by the findings. He said: “80 per cent of our business was through the intermediary channel, and we are totally committed to the market. These figures prove what a key market the intermediary market is to us.”
He added that the results suggested the market would remain stable: “BM Solutions’ figures are up 50 per cent from last year, and The Mortgage Business (TMB) and Bank of Scotland figures are similarly up. This year we expect a rise of 3 per cent for house prices and it will be a stable market.”
However Stockton admitted utility bills and council tax payments would halt a major surge in property prices and the housing market in general.
