Nigel Stockton, outgoing sales director of mortgages at Lloyds Banking Group, says the group expects to do more than 50% of all buy-to-let lending in 2011, despite making changes to its lending criteria last week.
Speaking at the Mortgage Intelligence annual conference last week, he says: “The recent changes affect 10% of our buy-to-let lending and we anticipate doing more than half of all buy-to-let lending next year.”
The group will no longer offer buy-to-let via brokers through Cheltenham & Gloucester and Lloyds TSB Scotland and property portfolios will be limited to a maximum of three properties or £2m worth of lending - whichever is exceeded first.
Stockton says the group did £5.5bn of the £8.5bn buy-to-let market in 2009 and expects to do £5bn this year.
He adds: “BM Solutions does around three times as much business as the second biggest buy-to-let lender every day. We would like more lenders in the sector. The regulator is concerned that our market share is around 70% - it’s tricky to justify.
“We’ve looked at ways to keep lending unchanged but lower our risk, and have found portfolios of 10 or more properties are risky.” Paul Howard, head of corporate accounts at Nationwide and The Mortgage Works, was also at the event and told the audience that TMW is looking to increase its share of buy-to-let.
He says: “It’s great when we hear that Lloyds group is looking to reduce its market share because we are looking to increase ours.”
Howard also encouraged brokers to grab a slice of the market.
He adds: “Around 98% of our buy-to-let business is done through brokers and demand is only going to go up.”
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