The Sunday Times - Lloyds slashes Help to Buy loans
Britian's biggest lender has drastically cut the amount that can be borrowed under the Help to Buy equity loan scheme, slashing the maximum by 70%.
Homebuyers with small deposits will now be able to borrow only up to £150,000 from Lloyds, down from £500,000 through the scheme previously. The change affects all Lloyds brands, including Halifax. The cap also applies to the group’s other equity loan and shared ownership deals.
Aaron Strutt of the broker Trinity Financial said: “It is unusual for a bank to cut the maximum loan size by such a large amount. The mortgage will still be popular with many first-time buyers outside London, where prices are often lower.”
Lloyds called the change “prudent and short term” and said it wanted to “focus on supporting first-time buyers who have limited options to get onto the ladder” .
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