Lloyds Banking Group is set to make an extra £4bn available in lending to first-time buyers (FTBs) after recent mortgage reforms.
The group said it would extend the ‘First Time Buyer Boost’, which is available through Lloyds Bank and Halifax.
Since launching the scheme in August 2024, over £4bn in lending has already helped 11,000 first-time buyers secure a mortgage by borrowing more than 4.5 times their income.
Additionally, the group said increasing the loan-to-income (LTI) ratio to 5.5 times raised the maximum available borrowing by 22%.
For a household earning £50,000 with a 10% deposit, this meant the maximum loan rose from around £224,500 to about £275,000.
Andrew Asaam, homes director at Lloyds Banking Group, said: “Buying your first home can be challenging, but First Time Buyer Boost helps by making your income go further.
“Recent affordability changes have already started to help would-be homeowners get on the property ladder sooner and lending an extra £4billion means we can help even more customers get the keys to their first home.”
