Lloyds’ mortgage lending dives 19%

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Lloyds Banking Group lent 19.1 per cent less to mortgage borrowers in the first half of the year than it did in the first half of 2014.

Its half-year report, published today, shows the group lent £16bn to borrowers in the first six months of the year, down from £19.8bn in the same period last year.

Lloyds claims to provide one in four mortgages to first time buyers and says it has lent £2.5bn through the Help to Buy mortgage guarantee scheme since it launched.

The results also show it has set aside an additional £1.4bn to pay claims for missold payment protection insurance, taking its total PPI provision to £13.4bn.

Lloyds says it is continuing to see complaints driven by claims management firms, and is paying out higher than expected average compensation.

The bank has posted a pre-tax profit of £1.2bn for the first six months of the year, up 38 per cent from £863m at the same time last year.