State-owned banks target wealthy borrowers

When the crunch first hit, most mortgage lenders shied away from certain parts of the mortgage market they perceived to be higher risk, including so-called ‘large loans', first-time buyers, sub-prime mortgages and buy-to-let. In recent weeks, however, some of the UK's largest lenders seem to have switched policy and are actively looking to lend bigger mortgages to some of those clients signed up with their private banking divisions. This month, LBG has dramatically reduced the interest rates charged on fixed-rate mortgage deals, available for Cheltenham & Gloucester customers borrowin...