Lloyds lends to 1 in 4 FTBs
In its interim management statement the bank said this was in line with its commitment to lend £5bn of gross new mortgages to first-time buyers in 2012.
With the support of the Funding for Lending scheme it also said it was committed to lend £500m of first-time buyer mortgages at more competitive rates, made accessible through two new product offerings.
These are a 7-year fixed rate mortgage through Halifax and Lloyds TSB of up to 90% loan to value for first-time buyers and through Halifax a 7-year fixed rate mortgage of up to 95% loan to value for NewBuy customers.
António Horta-Osório, group chief executive of LBG, said the bank’s early participation in the Funding for Lending scheme is enabling it to extend further financing to businesses and customers in the UK.
He said: “As part of this focus on supporting sustainable economic growth, we are continuing to increase SME lending on a net basis in a contracting market and provide mortgages to one in four first-time home buyers.
“We remain confident that, by delivering our strategy to be a simple, customer-focused UK retail and commercial bank, we can rebuild the trust of our customers and other stakeholders and can deliver sustainable returns for our shareholders over time.”
The group also reported an overall pre tax loss of £583m after setting aside a further £1bn in compensation for PPI mis-selling.
It brings the PPI bill to £2bn in the first nine months of the year in addition to the £3.2bn it paid out in 2011.
Stripping out the PPI costs there was some improvement in Lloyds’ underlying performance with profits up 148% to £1.9bn helped by further cost reductions and lower impairment charges.
And the bank said it expects to achieve a loan to deposit ratio of 100% for its core business in Q1 2013.