Saturday, September 25, 2010
Lloyds Banking Group, which provided 60% of all buy-to-let mortgages last year, is to cut maximum lending to landlords to a fifth of what the bank was willing to advance in 2009. Mortgage brokers claim the move will restrict choice and weaken confidence, with the value of homeloans of all types already at a 10-year low and prices slipping, but Lloyds said the move was part of a routine review. With effect from the close of business on Friday, September 24, Lloyds â€“ which owns Cheltenham & Gloucester (C&G) and BM Solutions â€“ will restrict maximum buy-to-let loans to Â£2m per person, secured to no more than three properties. Ray Boulger of mortgage brokers John Charcol said: â€œThey are slamming the brakes on after lending up to Â£10m per person on up to 10 properties last year."