"The first half was slow because we were late to market with basic product", said Paul Fegan, acting CEO at St George, explaining the modest increase in residential lending."With no product gaps we expect to continue to grow at a national level in line with system."Residential lending increased 10.4 per cent for the year to September, at the lower end of the previously announced guidance range of 10 to 12 per cent.Second half growth was strongest and close to system, producing an annualised rate of 12 per cent growth to push the residential lending book to $69.2 billion.Fixed settlements increased dramatically to 21.3 per cent for financial year 2007, up from 13.3 per cent for the 2006 period and 7.8 per cent in 2004.Customers fixing mortgages predominately moved from standard variable and basic, making up 29.7 per cent of settlements in financial year 2007, a decrease of 10.5 percentage points over the previous corresponding period.Receivables as at September 2007 were 38.4 per cent for standard variable and basic, 29.6 per cent for portfolio, with 18.7 per cent fixed. Low doc loans accounted for 6.8 per cent and no deposit 4.7 per cent, with small amounts for introductory and seniors access.Mortgages written in financial year 2007 had an average loan to valuation ratio of 73.5 per cent, with the overall mortgage book 38.3 per cent.St George residential lending market share is nine per cent, based on August APRA statistics.The consolidated 90 day past due balances for retail and commercial loans increased by a third to $225 million.