Bank commits additional £1 billion to help new borrowers access higher loan amounts
Lloyds Banking Group is expanding lending available to first-time buyers by relaxing income requirements and increasing how much borrowers can access relative to their earnings.
The lender will reduce the minimum household income needed to qualify for its First Time Buyer Boost product from £50,000 to £40,000. Simultaneously, the maximum loan-to-income ratio available through the scheme will rise to 5.5 times, up from 4.49 times, representing a 22% increase in borrowing capacity.
Under the revised criteria, a borrower earning £40,000 annually with a 10% deposit could secure a loan of £220,000, compared with £179,600 previously. The changes will unlock approximately £1 billion in additional mortgage credit for this cohort.
Since the introduction of First Time Buyer Boost in August 2024, the banking group has committed over £8 billion to first-time buyer lending. More than 15,000 borrowers have utilised the product to date.
"Today's £1 billion commitment takes us to a total of £9 billion specifically to help people get on the ladder quicker," said Andrew Asaam (pictured right), homes director at Lloyds Banking Group. "We understand the difference this can make to first-time buyers, having lent more money to more aspiring homeowners than any other bank so far this year.
"We're really pleased to be able to offer what they need in a responsible and sustainable way. We are making better lending decisions for those who can genuinely afford to borrow more."
Lloyds Bank and Halifax will also extend the scheme to self-employed first-time buyers from Dec. 5, with loan-to-income ratios aligned to salaried borrowers.
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