Mortgage Lending: A Mixed Bag for Barclays UK
The latest financial results from Barclays UK have revealed a mixed bag for mortgage lending. While the bank’s mortgage loans and advances stood at £163bn in the first quarter of the year, this represents a slight decrease from the same period last year.
The UK housing market has been experiencing a slowdown in recent months.
According to the results, the figure is down from £166bn in the first quarter of last year. However, it still represents the majority of its loans and advances, which came to £200.8bn in the first quarter.
The decline in mortgage lending has been attributed to subdued demand and lower market activity. Additionally, the repayment of government scheme lending in business banking has also contributed to the decrease.
Despite this, Barclays UK’s profit before tax for the first quarter came to £705m, which is 6% down on the same period last year. The firm also reported a credit impairment charge of £58m, which compares to £113m in Q1 last year.
“In Q1, Barclays delivered a return on tangible equity [RoTE] of 12.3% as we progress towards our targets of >10% RoTE in 2024, and >12% in 2026.” - C.S. Venkatakrishnan, Barclays group chief executive.
Barclays UK headquarters in London.
The results come as the UK housing market continues to experience a slowdown. With mortgage lending down and profits decreasing, it’s clear that the market is facing challenges. However, Barclays UK remains optimistic about its targets and is progressing towards its goals.
The UK mortgage market is experiencing a slowdown.
As the market continues to evolve, it will be interesting to see how Barclays UK and other lenders adapt to the changing landscape. One thing is certain - the mortgage market is in for a wild ride in the coming months.
