Majors ramp up fixed rate mortgage sales
The major banks have made a strong push to increase their share in the fixed rate segment of the mortgage market this year, a leading broker group reports.According to AFG latest Competition Index, the majors' share of fixed rate mortgage lending has jumped from 46.2 per cent of loans written by AFG brokers in June last year to 77.9 per cent last month.The big movers have been ANZ, whose share rose from 10.6 per cent to 20.2 per cent over the period, Westpac (5.9 per cent to 12.9 per cent) and its subsidiaries Bank of Melbourne (1.4 per cent to 3.6 per cent) and BankSA (0.5 per cent to 1.6 per cent).Commonwealth Bank's share of fixed rate mortgages written by AFG brokers rose from 12.3 per cent to 19.1 per cent over the period and the share of its subsidiary Bankwest rose from 3.1 per cent to 4.8 per cent.National Australia Bank went against the trend, with its share falling from 0.4 per cent to 0.2 per cent. However, its third party lending arm NAB Broker increased share from 5.9 per cent to 8.2 per cent.As a result of these increases the major banks' share of all mortgages written by AFG brokers has risen from 69 per cent to 70.1 per cent over the year to May.Among the majors, CBA (with Bankwest) has a 24.5 share of AFG business, Westpac (with its subsidiaries) has a 20.5 per cent share, ANZ has 14.8 per cent and NAB and NAB Broker have 10.2 per cent.Among smaller lenders, AMP's share of all mortgages has increased from 1.2 per cent to 2.7 per cent over the year, Liberty's has increased from 0.7 per cent to 1.9 per cent and ME's has increased from 0.8 per cent to 1.2 per cent.Among those losing ground over the year, ING Direct's share has fallen from 5.2 per cent to 4.3 per cent, Macquarie's has fallen from 3.6 per cent to three per cent and Suncorp's has fallen from 7.8 per cent to 3.8 per cent.Bank of Queensland's share of AFG business rose from 3.7 per cent in June last year to seven in December but has fallen back to 0.4 per cent.AFG general manager of sales and operations said: "These types of significant drops are often the result of service levels blowing out. If a broker has a client that needs their home loan settled in a reasonable time frame they are not going to risk placing the business where it will be held up by slow processing times."