Lloyds Banking Group is the most exposed of all of the major UK banks to vulnerable high loan-to-value borrowers, according to the Bank of England.
According to the BoE, 60 per cent of LBG’s £345bn mortgage book is classed as high LTV – mortgages between 70 and 90 per cent of the property’s value – or very high – 90 per cent and above. The BoE says 32 per cent of LBG’s mortgage book is classed as very high LTV.
Royal Bank of Scotland has the second highest exposure, with 27 per cent of its book classed as high LTV and 12 per cent classed as very high. Santander UK has 22 per cent of its mortgage book classed as high LTV and 11 per cent as very high. Nationwide has 21 per cent of its borrowers on high LTV mortgages and 7 per cent on very high LTV mortgages.
Barclays has 15 per cent at high LTV and 6 per cent at very high LTV and HSBC has an 8 per cent exposure to high LTV mortgages. No data was available for very high LTV mortgages for HSBC.
In its latest Financial Stability report, the BoE says: “Significant variation in the proportion of high LTV borrowers across banks suggests that exposures to vulnerable households are likely to be concentrated in a few banks.”