LONDON (Reuters) - Part-Nationalised Royal Bank of Scotland (L:RBS) has followed rival Lloyds Banking Group (L:LLOY) 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)