Figures released by Santander reveal a 43% year-on-year jump in gross mortgage lending for the first half of this year, with a total of £10.6 billion in ‘new business’ loans.
The average loan size for borrowers was £250,000, up from £246,000 in the second half of 2024. Home movers made up 41% of the total, down slightly from 42% in H2 2024, with remortgagers taking 28% (up from 27%). Just under a quarter of the total was secured by first-time buyers (22%, no change) with buy-to-let lenders remaining at 9%.
The details were shared in Santander’s quarterly management statement for the six months to the end of June, with the bank confirming it has ‘a good mortgage pipeline’ heading into the second half of the year.
Chief executive officer Mike Regnier commented:
“In the first six months of 2025 we continued to build momentum in our strategy to become the best bank for customers in the UK by investing in technology and service, and improving our processes and efficiency.
“Banco Santander’s recent agreement to acquire 100% of TSB from Sabadell accelerates our transformation, allowing us to enhance our customer proposition and invest more in innovative products and our digital offering. This is an excellent deal for customers, combining two strong and complementary banks. The transaction remains subject to regulatory and other approvals.
“Our H1-25 results demonstrate that business performance continues to improve, with an increase in net interest income and a reduction in operating expenses. However, profit before tax reduced to £764m due to higher transformation related charges as we invest in our future to become simpler, more agile, and better able to innovate to meet the challenges and expectations of our customers.”
