Caught out by Lloyds three mortgages rule

Caught out by Lloyds three mortgages rule

14:09 PM, 26th February 2013, About 11 years ago 3

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Readers WarningJust in case you are not aware of Lloyds three mortgages rule here’s how it caught me out.

I bought a run down terrace house last year to refurbish and wanted to sell once complete. However, to finance a new opportunity, which came along to soon, I decided to get a buy to let mortgage with BM Solutions.

I was offered the mortgage in principal subject to valuation so I paid the valuation fee of over £400 and had the property valued. It all came back fine and I was sent a mortgage offer last week.

Yesterday I had an email telling me that the offer was now withdrawn as I had three mortgages with the group and could not have a fourth. Apparently BM Solutions are part of the same group as Cheltenham & Gloucester, Halifax and also Bank of Scotland, AKA the Lloyds banking Group.

I did not want anyone else to fall into this trap .


Louis Parker

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Mark Alexander - Founder of Property118

14:14 PM, 26th February 2013, About 11 years ago

Hi Louis

I'm sorry to hear you got caught out and hope you manage to get replacement finance.

If you used a broker I think you have strong grounds for complaint as he or she should have been aware of your finances before making any recomendations. You broker should also been aware of this lending criteria.

If you didn't use a broker - well - lesson learned I guess.

If you would like me to introduce you to the broker I use feel free to drop me an email -

All the best and thanks for sharing your experience just for the sake of sharing with the hope of helping another landlord from making the same mistake - we really appreciate that 🙂


16:13 PM, 26th February 2013, About 11 years ago

I was aware of this because my broker has a list of my portfolio with lenders names written alongside. He picked up that I had 2 mortgages with Halifax when I was applying to BM Solutions for a mortgage. He informed me I would not be able to get any further mortgages with this group.
I did get caught out with The Mortgage Works though, I had an offer in principal and they pulled out at the last minute due to the fact that I have a Property Development business registered with Companies House at my home address. Apparently they will not lend to anyone involved in development.

Roger Rabbit14

17:41 PM, 26th February 2013, About 11 years ago

Hi Louis,

Sorry to hear about your situation. Definitely worth being aware of and thanks for bringing to our attention.

This is in fact not dissimilar to the bank compensation scheme for maximum savings of £85k. Relates to all banks within one group. Something to watch out when buying in cash and waiting to complete.

Martin Lewis' Moneysavingexpert did a very clear summary some time ago on which ones are in which group but I can't seem to find it now.

Googled it though and found this one:

Good luck!


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