Banking giant sees increase in home loan balances and digital applications
Lloyds Banking Group recorded a 14% increase in gross new mortgage lending to £5.6 billion in the first half of 2025, compared to the same period last year.
The group’s total mortgage balances reached £317.9 billion, reflecting both new lending and an £800 million quarterly increase, which was influenced by homebuyers seeking to complete purchases before changes to stamp duty at the end of March.
The bank, which owns mortgage lender Halifax, completed approximately £8 billion in lending to first-time buyers during the six months to June 30. The average loan-to-value (LTV) ratio for its mortgage portfolio stood at 43.4%, while new lending averaged 65% LTV.
Lloyds reported that its direct-to-bank market share grew by four percentage points, now accounting for about a quarter of its mortgage business. The lender attributed this to the introduction of a digital remortgage process, which has accelerated the shift toward mobile-first services. The group also noted a 20% protection take-up rate among mortgage borrowers, up seven percentage points from the previous year.
Pre-tax profit rose by 4% to £2.5 billion, with growth coming from both corporate and institutional banking as well as mortgages. Statutory profit after tax was £2.5 billion, up from £2.4 billion a year earlier.
“The fundamentals of the UK economy are robust and we welcome the ambition of the recently launched industrial strategy and financial services reforms by the UK government,” said Charlie Nunn, group chief executive at Lloyds Banking Group, in a trading statement.
“We have shown sustained strength in our financial performance in the first half of 2025, with income growth, cost discipline and robust asset quality, driving strong capital generation and increased shareholder distributions, with a 15% increase in the interim ordinary dividend.”
“We continue to make great progress in our purpose-driven strategy, building differentiated customer outcomes and delivering growth across our business as we build towards our ambitious targets for 2026. Our strategic progress and sustained strength in our financial performance allow us to reaffirm our 2025 guidance and give us confidence in our 2026 commitments. It also underpins our delivery of higher, more sustainable returns for our shareholders.”
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