Santander’s potential UK exit raises concerns despite boss’s pledge to stay put
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Santander’s potential exit from the UK could have a major ripple effect on the mortgage market, experts have warned, despite the bank signalling to consumers and staff that it will be staying put. Executive chairman Ana Botin insisted “We love the UK” following reports in the Financial Times that Santander is reconsidering its presence in the country.
“It is a core market and will remain a core market for Santander,” she told a panel at the World Economic Forum in Davos, Switzerland. But news of the potential review raised concerns about how consumers could be affected should a major player decide to leave Britain’s high streets.
Douglas Grant, group chief executive of financial services group Manx Financial Group, said it would “deal a significant blow to competition within the banking sector, particularly in the mortgage market”. “For a Government striving to ensure financial stability and address the housing shortage, such a move could prove highly detrimental,” he said.
The UK is a core market for Santander and this has not changed. Santander UK, the international banking group’s UK subsidiary, is a prominent mortgage lender and recently cut rates on more than 70 mortgage products. Experts said the move created more competitive rates for homeowners and could prompt rival lenders to improve their own offers in response.
