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The Trinity Mortgage Update

  Lloyds cap income multiples for mortgages over £500,000 Lloyds Banking Group has tightened its mortgage lending criteria in a move designed to take some of heat out of the rapidly increasing London property market. Applicants applying to Lloyds for a mortgage over £500,000 will be subject to new affordability rules capping the maximum amount they can borrow to four times their single or joint income. This is down from the more normal limit of five times income. The Lloyds changes will apply to the whole group including Halifax, Lloyds Bank, Bank of Scotland and Scottish Widows Bank. It is thought the policy change will reduce Lloyds' lending byapproximately 8% in London. Stephen Noakes, Lloyds group director of mortgages, told Mortgage Strategy magazine that while the housing market outside of London is fragile and prices largely remain below their top level, house prices in London are almost 30% above the 2007 peak.   Lenders still offering generous mortgages The majority of banks and building societies use mortgage affordability calculators to work how much they will lend and even with the Lloyds changes there are still some generous offers available.For example, Barclays will lend up to 5.5 times income if applicants have a good deposit and a decent credit score. Aaron Strutt, product manager at Trinity Financial, spoke to the BBC about the Lloyds changes and the availability of mortgages. He said:“Many of the lenders are offering mortgages over £500,000 and providing the borrower has a good level of affordability they will often offer up to five times income. “Even when taking into consideration the recent fixed rate increases, many of the lenders are still offering some of their best ever mortgages. For example, Trinity has access to two-year fixes below 2% and five-year fixes at just over 3%.”  

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Lloyds cap income multiples for mortgages over £500,000

Lloyds Banking Group has tightened its mortgage lending criteria in a move designed to take some of heat out of the rapidly increasing London property market.

Applicants applying to Lloyds for a mortgage over £500,000 will be subject to new affordability rules capping the maximum amount they can borrow to four times their single or joint income. This is down from the more normal limit of five times income.

The Lloyds changes will apply to the whole group including Halifax, Lloyds Bank, Bank of Scotland and Scottish Widows Bank. It is thought the policy change will reduce Lloyds' lending byapproximately 8% in London.

Stephen Noakes, Lloyds group director of mortgages, told Mortgage Strategy magazine that while the housing market outside of London is fragile and prices largely remain below their top level, house prices in London are almost 30% above the 2007 peak.

 

Lenders still offering generous mortgages

The majority of banks and building societies use mortgage affordability calculators to work how much they will lend and even with the Lloyds changes there are still some generous offers available.For example, Barclays will lend up to 5.5 times income if applicants have a good deposit and a decent credit score.

Aaron Strutt, product manager at Trinity Financial, spoke to the BBC about the Lloyds changes and the availability of mortgages. He said:“Many of the lenders are offering mortgages over £500,000 and providing the borrower has a good level of affordability they will often offer up to five times income.

“Even when taking into consideration the recent fixed rate increases, many of the lenders are still offering some of their best ever mortgages. For example, Trinity has access to two-year fixes below 2% and five-year fixes at just over 3%.”

 

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