It said the profile of its borrowers in the period was 41% homemovers, 28% remortgagers, 22% first-time buyers and 9% landlords. 

The average loan size of new business was £250,000, from £246,000 at the end of December. 

However, its loan book was flat at £167.2bn at the end of June from the end of December. 

The lender added: “We continue to anticipate a gradual return to net lending growth in 2025, with a good mortgage pipeline heading into the second half of 2025.” 

It said the percentage of home loans in arrears for longer than 90 days was 0.74% from 0.80% at the end of December. 

Earlier this month, the UK lender’s Spanish parent Banco Santander agreed to buy TSB from Banco Sabadell for £2.65bn in a deal that will make the UK business the fourth-largest mortgage lender in the UK.   

TSB has a £34bn mortgages book, which represents a 2% UK market share. 

Overall, Santander UK pre-tax profit fell 5% to £764m, driven by higher transformation charges, including £42m of charges relating to changes to its branch network and cutting staff by 2,000. 

Santander UK chief executive Mike Regnier said: “Banco Santander’s recent agreement to acquire 100% of TSB from Sabadell accelerates our transformation, allowing us to enhance our customer proposition and invest more in innovative products and our digital offering.” 

“However, profit before tax reduced to £764m due to higher transformation related charges as we invest in our future to become simpler, more agile, and better able to innovate to meet the challenges and expectations of our customers.”