Lloyds Banking Group has made £2bn of lending available to first-time buyers (FTBs) borrowing more than 4.5x their income to help people get on the housing ladder.
Through Lloyds Bank and Halifax, the First-time Buyer Boost introduces an improved loan-to-income (LTI) multiple for all eligible FTBs.
This allows them to borrow up to 5.5 times their household annual income, up from 4.49x.
To qualify for the boost, customers must apply for a FTB mortgage with Halifax or Lloyds Bank, have a total employed household income of £50,000 or more, have a loan-to-value (LTV) of up to 90% and not be using shared ownership or shared equity.
The lender revealed that it lent £12bn to FTBs in 2023.
Lloyds Banking Group homes director Andrew Asaam says: “Getting the keys to a first home is a big deal, but it’s tough right now. Aspiring homeowners have been struggling with house prices rising faster than their wages. They need to save for a deposit, keep up with rent, and choose the right mortgage.”
“Becoming a homeowner is one of the most fundamental things you can do to secure your long-term financial future, but it’s not easy. First-time Buyer Boost aims to make this journey easier by helping people make their income go even further.”
