The high street bank has revealed better than expected quarterly financial results as the UK mortgage market has seen a rise in recent months.

The business, which has a base in Barnwood, accounts for around 19 per cent of the UK mortgage market and said that lending had risen by £3.5bn during the three months to September 2020.

A temporary stamp duty holiday set out by the chancellor has revived the housing market after the initial lockdown in March, with Lloyds reporting the highest number of mortgage applications recieved since 2008.

This boost in lending has seen pre-tax profits for the business reach £1 billion for the quarter, a significant improvement on the £50 million recorded for the same period in 2019.

Group chief executive António Horta-Osório said: "Although our performance has clearly been impacted by the pandemic and the associated challenging economic environment, I am pleased that we are now seeing an encouraging business recovery and, with impairments significantly lower, a return to profitability in the third quarter.

"Although the outlook remains uncertain, our customer-focused strategy and the strength of the Group's business model will allow us to continue to help Britain recover and play our part in helping to return the UK to prosperity."