Lloyds TSB Scotland’s intermediary arm to stop accepting new applications

Lloyds TSB Scotland’s intermediary arm will stop accepting new mortgage applications at the end of the month.

Customers who have an existing mortgage through Lloyds TSB Scotland Spearhead are unaffected by the decision.

Brokers must submit requests for new decision in principles by 10pm on 15 March and full applications must be submitted by 10pm on 31 March. Existing pipeline applications must be offered by 30 April.

The lender, which accounts for only 0.5 per cent of Lloyds Banking Group’s entire intermediary mortgage lending, has separate products and criteria from LBG’s other intermediary brands, BM Solutions, Halifax and Scottish Widows Bank.

A spokeswoman for Lloyds TSB Scotland says: “Following a review of our business, Lloyds TSB Spearhead mortgages will not accept new business applications after 31 March 2013. This move allows us to focus our intermediary proposition through leading broker brands Halifax Intermediaries, BM Solutions and Scottish Widows Bank.”

Last month, Lloyds announced it plans to increase intermediary lending through Scottish Widows Bank this year, following the announcement that LBG director of intermediaries Mike Jones had become the lender’s managing director.

London & Country associate director of communications David Hollingworth says: “With the rejuvenation of Scottish Widows announced recently, you did start to wonder whether or not all brands would be necessary and if one brand was at threat.”