LONDON , Dec. 17 -- The Council of Mortgage Lenders issued the following news release: Major mortgage lenders today publish details for the first time of their total outstanding residential mortgage lending (including most buy-to-let lending as well as home-owner lending) broken down over 9,030 postcode sectors across Great Britain . The aggregate mortgage data, compiled by the CML, covers Barclays , HSBC , Lloyds Banking Group , Nationwide Building Society , Santander UK , RBS, and Clydesdale and Yorkshire Bank , who together represent about 73% of the total mortgage market. These lenders are also publishing their own lending data by postcode on an individual basis. The British Bankers' Association is simultaneously publishing a similar breakdown of SME lending and personal loans. Out of the 10,834 sector postcodes in Great Britain : - Data is being published on 9,030 sector postcodes, covering mortgage lending worth around Pounds885 billion. - In addition, there are 1,770 sector postcodes where (according to 2011 Census results) nobody lives. - There are 32 sector postcodes where people do live and where participating lenders have mortgages, but aggregate data cannot be reported because it might compromise individuals' data privacy. - There are just 2 sectors where people live but where participating lenders do not have mortgages (however, 2011 census data suggests that in both localities there were households with mortgages, which could well be provided by non-participating lenders). When interpreting these detailed figures, it is important to bear in mind that this postcode reporting exercise initially only covers lenders accounting for around three quarters of the overall mortgage market. With more than 100 active lenders, the mortgage market is fiercely competitive, and this means that local markets may display different market share characteristics. The detailed local statistics at sector postcode level provide for the maximum transparency possible without compromising data privacy. However, interpreting them is less straightforward - especially given the significant variation in such factors as house price values, population size and tenure patterns at a local level. So we are also supplying higher level "postal area" data - covering the 120 postal areas of Great Britain . On this basis, we are able to report Pounds891 billion of mortgage lending by the participating lenders, since we are able to include some of the lending that had to be excluded for data privacy purposes from the more detailed sector breakdown, as well as some lending that could not be attributed to a specific sector postcode. CML director general Paul Smee comments: "As you would expect, strong levels of mortgage lending are broadly correlated with those areas where there is a strong resident population. While the dataset covers only three quarters of the mortgage lending market, it certainly shows that there are reassuringly few surprises in the postcode distribution of mortgage lending." Notes to editors 1. Which lenders are included? Participating lenders for the mortgage lending element are: Barclays , Lloyds Banking Group , HSBC , RBS, Santander UK , Clydesdale & Yorkshire Banks and Nationwide Building Society . Collectively, these institutions account for 73% of total mortgage lending. The CML is publishing data for residential mortgage lending. The BBA is publishing data for SME lending and unsecured personal loans. Media enquiries on the SME and personal loans element of this data exercise, collated by the British Bankers Association , should be directed to the BBA press office on 020 7216 8989. 2. Protecting customer confidentiality Lenders have taken care to strike a balance between the desire for transparency and the need to protect customer confidentiality. To protect the privacy of business and personal customers, a set of parameters were agreed with the Government to ensure customer confidentiality is protected and that there is compliance with data privacy rules. This has led to up to 10 per cent of postcode sectors at aggregate level being redacted. Business groups have stressed that great care must be taken to ensure that the borrowing of commercial customers cannot be identified. 3. What do borrowing levels indicate? Stock levels are not equivalent to current demand nor new borrowing. They will comprise borrowing agreements made in the past, new agreements, repayments and borrowing written off. Borrowing is not a direct indication of the financial health of borrowers. Levels will reflect the demographic and characteristic makeup of a sector and its customers - for example, predominantly residential sectors will be unlikely to see high levels of SME borrowing, predominantly shopping areas will be unlikely to see high levels of mortgages or personal loans. 4. What is being reported? Lenders report on three separate business streams: SMEs, residential mortgages and unsecured personal loans. All figures reflect the total amount of borrowing outstanding on customer accounts. This figure is likely to fluctuate over time for a number of reasons including the following: - new borrowing agreements are entered into - customers repay borrowing in part or in full - existing agreements mature - borrowers move location - borrowers switch into or out of alternative finance products - borrowers switching to a different lender 5. What is a sector postcode? This exercise centres on the postal addresses represented by Royal Mail postcodes. The postal address is a sorting and routing instruction to Royal Mail and not always a geographically accurate description of where properties are located. They are made up of several components, as follows: Click here to view Full Postcode: http://www.cml.org.uk/cml/media/press/3781 The Royal Mail continuously reviews and makes changes to its postcodes, for example, when there are new homes or businesses in a development area, new or re-routed roads, or lack of codes for extra capacity. The data published here reflects borrowing in 'live' postcodes (according to the list published by the Royal Mail in August 2013 ), and is therefore an up-to-date picture of its geographic distribution across Great Britain . There are around 1.8 million full postcodes, 10,000 sector postcodes, 3,000 districts and 120 postal areas. There are a number of alternative geographical classifications, for example county, local authorities and parliamentary constituencies, but these do not necessarily directly map across to sector postcodes. 6. Why are some figures not available? One of the key roles played by the BBA and CML has been to ensure that participating lenders report as fully and as meaningfully as possible, whilst also adhering to all relevant data privacy, competition and other laws. As highlighted above a major consideration and necessary requirement has been to maintain customer confidentiality. A general level of protection for customers is afforded by publishing postcode figures six months after the end of the reporting period. This is a deliberate part of the design of this exercise, and will be an on-going feature. We and individual lenders have applied a number of specific filters, that have been agreed with the Government, to ensure the protection of individual customers and their confidential data, which should not be capable of being imputed by users from other sources. These filters/rules are: - Borrowing stocks for a sector postcode cannot be disclosed where customer confidentiality would be compromised (ie where fewer than 10 borrowers exist in the sector or where borrowing is highly concentrated in a small number of the largest borrowers in the sector). - Individual lenders are not obliged to publish borrowing at sector level if they hold less than 10 per cent of SME borrowing, 3 per cent of mortgages or 3 per cent of personal loans in a sector. When applied to the aggregate dataset, the total value of borrowing that needs to be redacted (that is, not published) is relatively small: such borrowing accounts for 4 per cent of SME lending, and under 0.5 per cent of mortgage lending and personal loans. However, redactions are thinly spread, meaning that for a number of geographies, we are not able to publish a borrowing total that represents the absolute sum of borrowing from all participating lenders. While this means that aggregate figures shown may not be exactly comparable across different sector postcodes, in most cases the borrowing amounts not included will be fairly small. Aggregate information provides a good overall picture. Individual lenders also need to ensure customer information is protected and, by necessity, will have a more redacted summary. As with any new initiative, there have been a number of reporting challenges. In a number of cases, lenders' systems have not been able to reconcile fully their information back to live postcodes sectors, for example because of inadequate, historic or incomplete information. While lenders will be able to mitigate some of these problems in future, this time round, such borrowing accounts for under 2 per cent of SME lending, under 1 per cent of mortgage lending and under 2 per cent of personal loans. 7. What is the market coverage of this initiative? Click here to view table: http://www.cml.org.uk/cml/media/press/3781 8. Other postcode lending data? Individual lenders will publish consistent data relating to their own customers' borrowing. Website links are: - Barclays Bank http://group.barclays.com/about-barclays/citizenship - Clydesdale & Yorkshire Banks http://www.cbonline.co.uk/media/results-financial-information/ - HSBC Bank http://www.hsbc.co.uk/1/2/about-us/sustainability/postcode-lending-data - Lloyds Banking Group http://www.lloydsbankinggroup.com/media1/postcode_lending.asp - Nationwide Building Society http://www.nationwide.co.uk/lendingbypostcode - Santander UK http://www.aboutsantander.co.uk/media/postcode-lending-data.aspx - RBS http://rbs.tm/postcode The BBA will publish aggregated data for SME lending and unsecured personal loans on its website at http://www.bba.org.uk/statistics/postcode-lending . The CML will publish aggregated data for mortgage lending on its website at http://www.cml.org.uk/cml/statistics/postcode . Future data will be made available quarterly, relating to a date point six months in arrears. The next datasets, relating to balances at end-September 2013 , will be published in April 2014 . We are considering additional features and functionality for future reporting waves. TNS 18EstebanLiz-131218-30FurigayJane-4581556 30FurigayJane
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