The reason for that is the financial impact the coronavirus spreads to the housing market
Largest British banks pull back on mortgage lending. Source: pixabay.com
According to LearnBonds, Halifax, Lloyds, and Barclays are among the first lenders to restrict new mortgage loans’ size.
The data stated that Lloyds Banking Group, which includes Halifax and Bank of Scotland, has temporarily pulled most deals above 60% loan-to-value (LTV) for buyers and people remortgaging as well.
As to Barclays, it has withdrawn the majority of its mortgage deals above 60% LTV for purchases for new buyers.
This move means homeowners will need at least a 40% equity to get a remortgage deal with Lloyds or Halifax. In addition to that, Lloyds, Halifax, and Barclays require a minimum deposit of 40% to get a mortgage while buying a home.
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- Leading neobanks in the UK: top 6 digital-only banks
- How to get a mortgage
- Secured and unsecured loans: how to know which one to choose?
