Lloyds TSB Scotland's intermediary brand will not accept new business applications after 31 March 2013, with 28 Scotland-based employees placed on risk.
All current Spearhead customers will be unaffected. Lloyds Group continues to operate broker brands Halifax Intermediaries, BM Solutions and Scottish Widows Bank.
This comes after Lloyds announced big plans for the intermediary sector this year after Scottish Widows relaunched in mid-February.
The bank said it concluded that Spearhead is no longer aligned to the longer term strategic aims of our business.
A Lloyds Banking Group spokesperson said: “This move sets us up for the rest of the year. We have nothing else planned for the three remaining intermediary brands mentioned.”
The group said the closure of Lloyds TSB was unlikely to impact its overall mortgage lending, which represented less than 0.5% of intermediary business.
