Lloyds Banking Group puts new limits on buy-to-let lending

Lloyds Banking Group puts new limits on buy-to-let lending




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The largest mortgage lender in the UK, Lloyds Banking Group, has unexpectedly told brokers that it is restricting new lending to landlords. 

In a move that is set to put even more strain on the sector, buy-to-let investors will now be unable to borrow more than £3 million, and will be limited to a maximum of nine properties across the lender’s brands, which includes Lloyds TSB, Cheltenham & Gloucester, Halifax, Bank of Scotland, Intelligent Finance, Birmingham Midshires, Scottish Widows Bank and The Mortgage Business.

 

The group would once lend up to £6 million against 18 properties, and before Lloyds TSB rescued HBOS to form Lloyds Banking Group late last year, the two lenders’ combined funds totalled £14 million, without a cap on the number of properties secured.

 

A spokeswoman for Lloyds Banking Group has said that “aligning the criteria in this way is the right thing to do”, and added that it would allow the group to “manage portfolio lending consistently and effectively.”

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