Lloyds takes precautions on UK home mortgages as bubble talk simmers

City of London
By Matthew Scully
12 Jun 2014

Lloyds Bank is reacting to a surge in UK house prices by placing caps on the size of its largest mortgages, a top bank executive said on Thursday, one day after Christine Lagarde, head of the International Monetary Fund, called on the Bank of England to follow through with such measures.

House prices in London are up as much as 17% from last year, according to the most recent data from the Office of National Statistics, which shows recent home values averaging £253,000 across the UK and £458,000 around London.

“We have taken measures to limit the ...

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