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Hopes dashed by Lloyds’ lending aim

Brokers are disappointed after Lloyds revealed it would only increase mortgage lending by £3bn over the next 12 months.

The Government now controls a 65 per cent majority stake in the bank after it submitted £260bn of debt to the Treasury’s asset guarantee scheme. In return, it has pledged an extra £14bn lending capital over the next year, £11bn for commercial lending and only £3bn for mortgage lending. It says this will be repeated in 12 months’ time, totalling £6bn over two years. Lloyds would not confirm how much of the money would be for intermediary lending.

Money Workout managing director Matt Andrews says the lender’s 14 best deals now are direct so brokers should not expect to see much of the £6bn.

He says: “The mortgage market needs products to be made available to the UK consumer, to improve lending levels. It is not just loan to value or interest rates, it is also the underlying credit score tightening that must be released.”

Savills director Melanie Bien says: “This is not very impressive from Lloyds, especially considering its size. The only hope is that the Government is spreading the focus of lending between all the Government-backed banks and brokers will see more lending come through Northern Rock, for example.”


Addressing gown

Over the past couple of weeks, I have been looking in detail at the rules and practice on the deductibility of premiums paid under keyperson policies.


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