Money: Mortgage price war set to put Santander profits under pressure - PressFrom - United Kingdom
  •   
  •   

MoneyMortgage price war set to put Santander profits under pressure

14:00  19 july  2019
14:00  19 july  2019 Source:   msn.com

Santander Profit Hit by Charges for Job Cuts, Restructuring

Santander Profit Hit by Charges for Job Cuts, Restructuring Santander Profit Hit by Charges for Job Cuts, Restructuring

Apply for a bank account online with Santander Bank. Enjoy convenient online bank account options from one of the best personal banks.

Santander 's knowledgeable business bankers are ready to help you choose the right banking solutions for your business. Santander Bank business credit exposure at time of loan application in addition to the loan application request amount is more than 10% of your business’ most recent annual sales.

Mortgage price war set to put Santander profits under pressure © Laura Lean Santander has already revealed a hit from the intense competition in the market (Laura Lean/PA)

High street banking giant Santander will reveal how it has fared amid the mortgage price war raging in the UK when it kicks off half-year bank results on Tuesday.

The Spanish-owned lender has already revealed a hit from the intense competition in the market, which is putting the squeeze on British banks, with a 35% plunge in its first quarter profits.

First out of the stalls from the UK banking sector, Santander is expected to reveal the woes have continued throughout the first half of 2019, with mortgage rates under pressure across the board.

TSB takes further £36m charge over IT meltdown

TSB takes further £36m charge over IT meltdown TSB has taken a further £36m hit over its IT meltdown last year and revealed its profits were being squeezed by tough competition in the mortgage market. The lender, owned by Spain's Sabadell bank, said it had "begun a new chapter" in the wake of the fiasco as it reported a £21.1m pre-tax profit for the first half, compared to a £107.4m loss a year ago. But it is still paying for the disaster and added a £36m charge to the £330m sum spent in 2018 to cover costs including customer compensation, fraud and extra staff to fix the problems. The meltdown saw up to 1.

Buying a new home or refinancing is easy at Santander Bank. We’ll help you navigate mortgage types to find the home loan that’s right for you. Not only that, with Santander Bank’s competitive rates backed by personalized, friendly service, you’re sure to feel right at home.

HSBC is to withdraw the 2.99% fixed-rate mortgage which started a price war over At the time the deal, which was offered to borrowers with at least 40% to put down as a deposit Santander matched the rate, also charging a £1,495 arrangement fee, then NatWest beat it with a 2.95% five-year fix.

The trend has been great for borrowers, but has taken its toll on retail banking groups, who have already seen profit margins hammered by more than a decade of low interest rates.

It has also led to some smaller players quitting the market, with Tesco Bank putting its mortgage book up for sale in May amid the difficult trading conditions for lenders.

Mortgage price war set to put Santander profits under pressure © Getty

Santander is understood to be one of the bidders looking to snap up Tesco Bank’s mortgages as it becomes a market favouring the large scale.

But even with a hefty mortgage balance under its belt, Santander has been feeling the heat, reporting pre-tax profits of £270 million for the first three months of 2019, down from £414 million a year earlier.

Underlying pre-tax profits fell 13% to £352 million in the first quarter.

Lloyds, Barclays and Royal Bank of Scotland set to unveil £8.8bn profits in the week ahead

Lloyds, Barclays and Royal Bank of Scotland set to unveil £8.8bn profits in the week ahead Lloyds, Barclays and the Royal Bank of Scotland are tipped to reveal that combined profits soared 34 per cent to £8.8billion for the first half of the year, according to the estimates of analysts. Profits at Barclays will rise significantly because it was hit by a £1.4billion settlement with the US Department of Justice last year for mis-selling financial products during the financial crisis.

AA Mortgages is the fifth lender to close its doors to new customers in the past three months as fierce pricing wars force providers out of the market. But it declined to confirm whether it or AA Mortgages was behind the decision to stop new loans under the AA banner.

Find the answers to your mortgage refinancing and mortgage modification questions to help you decide if Santander Bank homeowner assistance programs are right for you. How do I apply for a modification under the Making Home Affordable Plan or a Santander Home Loan Modification?

Its figures showed net interest income, a key measure for retail banks, dropped 6% in the first quarter largely as a result of the mortgage woes.

The wider Banco Santander group, based in Madrid, was also weighed down by the British performance, with net profits falling 10% to 1.84 billion euro (£1.7 billion) for the three months to March.

The figures showed a worsening of the mortgage lending conditions since 2018, with experts suggesting the price war has been amplified by ring-fencing regulations.

Gallery: Company catastrophes that caused the biggest business losses ever (Love Money)

It is thought the rules, which require banks to separate their retail operations from investment banking businesses, have seen banks left with large amounts of funds trapped in their retail arms, which they are putting to use by lending, pushing rates down.

The impact on net interest margins and profits is set to be a running theme across many of the major UK banking players, which will follow suit with their figures over the next two weeks.

Home-buyer mortgage approvals at five-month high in June

Home-buyer mortgage approvals at five-month high in June Some 66,440 mortgages were approved for house purchase in June – the highest total since January, the Bank of England said.

As mortgage rates fall to record lows, Santander launches a new range of buy-to-let remortgage rates. Find out more about the buy-to-let mortgage price war . Experts are talking about a ‘ mortgage price war ’, as lenders compete for customers against a backdrop of dwindling demand and a sluggish

Britain's mortgage price war has put building societies under pressure as cheap wholesale funding and restrictions on home loans squeeze trading. Mutually-owned lenders have suffered declining new business in the past three months as interest rates on mortgages fall to record lows, according to a

TSB, owned by Banco Sabadell, reports on Friday.

Santander’s interim figures also come after the group announced earlier this year that it is to axe 140 branches across the UK, putting more than 1,200 jobs at risk.

First quarter figures showed it booked £77 million in charges related to the overhaul.

The half-year figures will also be watched for any further cash set aside for the payment protection insurance (PPI) saga as the August deadline for claims looms large.

MSN are empowering Women In Sport this summer. Find out more about our campaign and the charity fighting to promote the transformational and lifelong rewards of exercise for women and girls in the UK here.

Owning a home could be an unrealistic dream for young Brits, study says.
Owning a home could be an unrealistic dream for young Brits, study says

—   Share news in the SOC. Networks

Topical videos:

usr: 2
This is interesting!