Largest British banks pull back on mortgage lending 

The reason for that is the financial impact the coronavirus spreads to the housing market

mortgage

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As to Barclays, it has withdrawn the majority of its mortgage deals above 60% LTV for purchases for new buyers.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.

The Covid-19 situation is changing on a daily basis and we continue to adapt our service to ensure continued support. This has had a direct impact on our available processing resource and we have therefore withdrawn new mortgage and remortgage products across our residential range with a loan to value ratio of over 60%
Halifax

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