Lloyds/ HBOS commit additional £3Bn to mortgages this year

Lloyds / HBOS fell on the sword finally and gave up some £260Bn of "assets" into the APS and in return found  UKFI now owning 65% of its shares and a commitment to increase its proposed mortgage lending from £9Bn to £12Bn this year. The split between pure residential mortgages and Buy To Let mortgages has not been defined but a cynic might argue for a bias towards the former group as that is where votes in any upcoming general election would lie.

An additional £9Bn is also promised to business lending but the challenge as with all these things is proving the benefit ie borrowers actually finding it easier to obtain credit.

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