Santander UK has reported gross lending growth of £2.3bn for the nine months to 30 September.
The bank reported gross mortgage lending of £21.3bn, up 16 per cent on the £18.3bn of gross lending during the same period in 2017.
The company said higher approvals had been driven by pricing actions in 2017 as well as a focus on risk management, service and customer retention.
Meanwhile, net interest income fell by 4 per cent, driven by pressure on new mortgage lending margins and customer attrition, although the lender said this was offset by its stronger gross lending figures.
Net interest income is the difference between the revenue generated from a bank's assets and the expenses associated with paying its liabilities.
Santander UK has reported a 10 per cent drop in profits after tax in the nine months compared with the same period last year.
Profit after tax during the nine-month period was £997m against £1.1bn in 2017.
The lender also reported third quarter profit before tax was down by 4 per cent compared with the previous quarter.
It said the profit squeeze was the result of continued income pressure, rising regulatory, risk and control costs, and ring-fenced transfers.
Nathan Bostock, chief executive of Santander UK said: "Our results reflect competitive income pressures and higher regulatory project costs, as well as the impact of ring-fence transfers. Our efficiency initiatives have reduced cost growth in each quarter this year.
"In an uncertain environment, we continue to control business growth, prioritising credit quality while delivering for our customers."
"In a highly competitive market, we continued to support customers and have grown net mortgage lending while maintaining our rigorous underwriting approach.”
