Banking giant allots £4 billion to support buyers amid relaxed lending rules
Lloyds Banking Group has announced it will make an additional £4 billion in lending available to first-time buyers with high loan-to-income (LTI) ratios, following recent changes to mortgage lending rules.
The group is extending its First Time Buyer Boost scheme, which is offered through Lloyds Bank and Halifax. Since its launch in August 2024, the scheme has already supported over 11,000 first-time buyers, enabling them to borrow more than 4.5 times their income, with total lending surpassing £4 billion.
With the LTI cap now raised to 5.5 times income, eligible buyers can access up to 22% more borrowing. For example, a household earning £50,000 with a 10% deposit could see their maximum loan increase from around £224,500 to approximately £275,000.
Lloyds said the changes are part of its ongoing commitment to support first-time buyers. In the two months since updating its affordability assessments, the group has helped more than 1,000 first-time buyers secure mortgages they would not have previously qualified for. Since 2018, Lloyds has provided over £100 billion in mortgages to more than 500,000 first-time buyers.
“Buying your first home can be challenging, but First Time Buyer Boost helps by making your income go further,” said Andrew Asaam, homes director at Lloyds Banking Group. “Recent affordability changes have already started to help would-be homeowners get on the property ladder sooner and lending an extra £4 billion means we can help even more customers get the keys to their first home.”
Lloyds noted that since clarifying its approach to mortgage stress testing in April, it has enabled an additional 3,000 buyers — including over 1,000 first-time buyers — to access mortgages they would not have qualified for under previous criteria.
To be eligible for the First Time Buyer Boost, applicants must apply for a first-time buyer mortgage with Halifax or Lloyds Bank, have a combined employed household income of at least £50,000, a loan-to-value ratio of up to 90%, and not use shared ownership or shared equity schemes. The offer is available via all channels, including phone, online, in-branch, and through intermediaries. Lloyds confirmed there are no extra processing requirements for brokers or advisers.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
