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RBS tightens mortgage lending criteria, following rival Lloyds
June 3, 2014 / 5:17 PM / 4 years ago

RBS tightens mortgage lending criteria, following rival Lloyds

LONDON, June 3 (Reuters) - Part-Nationalised Royal Bank of Scotland has followed rival Lloyds Banking Group in placing restrictions on mortgage lending to tackle rising house prices, sources familiar with the matter told Reuters.

The bank, which is 81 percent owned by the government, will introduce a four times loan-to-income cap and maximum term of 30 years for all mortgages worth 500,000 pounds ($837,000) or more.

The move is designed to be an extra safeguard on top of the affordability checks RBS already has in place, one of the sources said. ($1 = 0.5974 British Pounds) (Reporting by Matt Scuffham)

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