LLoyds TSB the UK’s fourth biggest lender has announced that it is pulling out of the 100% mortgage market with immediate effect.
The group has said that mortgages arranged through its Cheltenham and Gloucester sudsidary will require a minimum of 10% deposit. The group will still offer mortgages of up to 95% of property value, through its LLoyds TSB channel, where 90% of its borrowers already have their current account and normally at least one other account with the group, making it easier to assess the risk.
LLoyds TSB said its decision reflected the “competitive environment in which all lenders are operating”.It added that it launched its 100% products a year ago and neither C&G nor Lloyds TSB were well known for lending at this end of the market, adding that it had “no desire” to compete aggressively on the loans and this had always been reflected in its pricing of them.
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