Lloyds to tackle housing inflation with loan-income cap

Britain's biggest mortgage lender has 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.

ITV News Business Editor Joel Hills reports:

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Lloyds says new limits will impact 2% of total mortgage lending. Bank wrote £37bn of new home loans in 2013.

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Governor of the @bankofengland doesn't see a housing bubble but Lloyds Banking Group does, in London at least.

Lloyds Banking Group said it has been designed in a bid to tackle the pressure of housing inflation in the London market.

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Lloyds sets up loan-to-income cap for mortgage claims

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.