Lloyds axes B2L via C&G and Lloyds TSB Scotland
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Lloyds Banking Group is to no longer offer buy-to-let via brokers through its Cheltenham & Gloucester and Lloyds TSB Scotland brands.
The move comes as part of a package of wider reforms to its buy-to-let offering.
From next Friday, buy-to-let property portfolios will be limited to a maximum of three properties, or £2m worth of lending - whichever is exceeded first, across Lloyds group.
In an email to brokers today, Peter Curran, head of intermediary distribution at Lloyds group, says: “These changes mean we will continue to support the vast majority of landlords through our leading specialist buy-to-let brand, BM Solutions, helping to ensure that we are providing a competitive and appropriate proposition.”
The changes will be effective from close of business on September 24.
Pipeline applications will be honoured but any subsequent changes will be assessed under its new policy.
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Readers' comments (22)
Roger Travis | 17 Sep 2010 4:41 pm
This is awful. A real set back in a market. From a lender that is 70% State owned, and doing 28% of UK mortgages, i cannot see how this is going to help the lending market. It will only lead to lack of rental properties, which combined with FTB having a hard time getting onto the ladder anyway will bring the market to a standstill.
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Danny Lovey | 17 Sep 2010 4:42 pm
The BTL market is dead - long live the BTL market
Just 3 properties BTL over the whole Lloyds group. We may as well admit that BTL for an average BTL client is over
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Colin Payne | 17 Sep 2010 4:57 pm
The final nail will be when Lloyds disregard Birmingham Mids criteria and insist they become C & G under a different guise by asking all applicants to be on a minimum income of £35k....
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Confused | 17 Sep 2010 5:06 pm
Let's just hope the rumours of Paragon's return to lending are true.
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John Baker | 17 Sep 2010 5:07 pm
No FTBs, no BTLs, no Public Sector Housing, a growing population....where now? When BBR goes up and the repossessions start, exactly whom are the banks going to sell the properties to?
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Anonymous | 17 Sep 2010 5:07 pm
Yet more wonderful corporate spin from LTSB/HBOS - the email reads like somehow slamming the door in the face of brokers by removing access to a product range - again - is a good thing.
The way the email is worded it appears that customers will still have access to C&G BTL In branch as it doesn't say that BTL is being withdrawn from the brand - just from access by brokers.
No doubt they'll be telling us again shortly about their unwavering dedication and commmitment to supporting intermediaries through these difficult times.......
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Steve | 17 Sep 2010 5:27 pm
They'll be back - Cap in hand!
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John Baker | 17 Sep 2010 5:36 pm
Steve 5.27 - I agree they'll be back when they need volume again. The issue is - when? And how many will be here to respond?
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Anonymous | 17 Sep 2010 5:37 pm
I can't wait to see the party at TMW this afternoon. With another major competitor pulling from the market for serious landlords, it looks an early Christmas for the few lenders remaining to service the dwindling broker population. We have already seen huge application fee increases as lenders cut their LTV's and toughened their criteria. Imagine what the remaining lenders can get away with.
Is it possible for the Government and the FSA to keep advocating independent advice whilst not commenting on the inevitable outcome of State owned lenders side-lining the independent advisers.
The way the statement to brokers is worded makes me wonder whether another spin doctor has moved from Government to Lloyds or maybe is applying for a move in the opposite direction. Seems to have all the right qualifications.
Still, it might make it easier for the FSA to take responsibility for the BTL sectir if there isn't one.
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Mr Mortgage | 17 Sep 2010 5:38 pm
What a wonderfully supportive lender, thank for for your loyalty ............ and yet we still continue to support the group.
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