Lloyds group has greatest exposure to high LTV mortgages

Lloyds Banking Group has the highest proportion of mortgages at an LTV deemed to be high or very high by the Bank of England, research by the Bank shows.

The Bank’s latest Financial Stability Report reveals 60% of Lloyds group’s mortgage book is at a high or very high LTV, 32% of which is at a high LTV.

A very high LTV is defined as one over 90%, and a high ratio is defined as one between 70% and 90%, except for Barclays and Santander UK, which is between 75% and 90%.

Lloyds group’s proportion of high LTV mortgages is almost twice that of the other high street banks.

27% of Royal Bank of Scotland’s mortgage book is at a high LTV, and a further 12% is very high.

Santander has the next highest proportion, with 22% at a high LTV and a further 11% at a very high LTV.

Nationwide had 21% at a high LTV and a further 7% deemed very high, while Barclays had 15% at a high LTV and a further 6% at a very high LTV.

HSBC had just 8% at a high LTV and no data was available for very high LTVs.

The Bank of England report says that the proportion of unsecured debt held by vulnerable households is relatively high and rising.

But it says that the significant variation in the proportion of high LTV borrowers across banks as shown by the figures suggests that exposures to vulnerable households are likely to be concentrated in a few banks.