Lloyds Banking Group is making an additional £1bn of mortgage lending available to first-time buyers by reducing the minimum household income required for its First Time Buyer Boost scheme.
The threshold will fall from £50,000 to £40,000, allowing more buyers to access borrowing at up to 5.5x income through Lloyds or Halifax.
The Group said the change will expand access to higher loan-to-income products after affordability updates in April increased the amount a typical family could borrow by around £38,000.
It said raising the LTI for eligible customers from 4.49x to 5.5x represents a 22% increase in the maximum loan size, meaning a household with £40,000 income and a 10% deposit can now borrow £220,000 rather than £179,600.
Since launching First Time Buyer Boost in August 2024, the Group has pledged more than £8bn of lending to support first-time buyers, enabling over 15,000 people to purchase a home sooner through higher LTI lending.
Andrew Asaam, homes director at Lloyds Banking Group, said: “Today’s £1bn commitment takes us to a total of £9bn specifically to help people get on the ladder quicker.
“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, and 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.”
The Group is also extending the scheme to self-employed first-time buyers. Self-employed applicants will be able to access the same 5.5x LTI as employed customers, provided they meet the deposit and affordability requirements.
The changes will take effect from 5th December 2025.
