Figures from the Council of Mortgage Lenders revealed that TSB now holds a 0.8% share of the gross mortgage lending market.
Lloyds Banking Group was crowned once again as the largest lender with a 20.2% share of the market.
Santander was the highest mover and became the third, up from fifth, biggest lender in the country with a 10.4% market share.
Interestingly the market has also seen a consolidation of the market by the top six lenders (Lloyds, Nationwide, Santander, Barclays, HSBC and RBS).
Prior to the financial crash theses lenders accounted for 61% of gross lending before increasing their market share to 86% by 2009. However their dominance has started to wane with their market share dropping to 71.8% in 2014.
In its latest News and Views the CML said: “Perhaps the most striking change shown by today’s data is the shift in market concentration.
“In 2006, before the onset of the financial crisis, the six largest lenders accounted for 61% of total gross lending.
“But the exit of many smaller lenders in the years immediately following this – together with a number of firms affected by market consolidation – led to increasing dominance of the market by the six largest lenders. So, by 2009, those lenders undertook an estimated 86% of all lending.
“Since then, however, we have seen a significant reversal of this trend. In 2013, the top six lenders saw a further sharp fall in their combined market share. Overall, these firms accounted for 72% of gross lending, down from 76% in 2012.
“Movements in market share have not, however, been in a universal direction among the largest six lenders.”
Outside the top six firms 11 lenders out of 14 showed an increase in lending in 2013. The largest change was recorded by Yorkshire Building Society, which increased advances from £4.6bn in 2012 to £6.8bn, or by 48%.
This strong growth saw the society increase its market share by 0.7%, moving it up two places to seventh on the list.
Other lenders outside the top six to show strong year-on-year growth included Skipton Building Society, Aldermore Mortgages and Kent Reliance – a healthy mix of long-established lenders and newer market entrants.
