Lloyds sets up loan-to-income cap

Press Association
PA
PA

%VIRTUAL-SkimlinksPromo%Britain's biggest mortgage lender is imposing a new loan-to-income cap on people looking to borrow more than half a million pounds in a bid to tackle the pressure of housing inflation in the London market.

Lloyds Banking Group said that from today, people applying to take out a mortgage worth more than £500,000 will see the amount they are allowed to borrow limited to four times their income.