Lloyds slash funding for landlords’ portfolios

Permalink: Lloyds slash funding for landlords’ portfolios
by Gill Montia

Professional landlords have just had their funding options reduced, The Daily Telegraph has reported.

According to the newspaper, Lloyds Banking Group is reducing the maximum number of mortgages that can be held across all its brands to nine, with a total value of up to £3 million.

Previously landlords had been able to holds up to nine mortgages with Cheltenham & Gloucester and a further nine with any of the former HBOS brands, as long as the total did not exceed £6 million.

Lloyds says it is re-aligning its lending criteria across the group and will be honouring existing buy-to-let loans.

However, the move reduces competition and choice for landlords whether they are looking for new funding or remortgaging.

The bank has been providing half of all new buy-to-let lending across its Cheltenham & Gloucester, Halifax, Bank of Scotland, BM Solutions and Mortgage Business brands, the Telegraph reports.