Lloyds Banking Group introduces new 5.5x LTI for first-time buyers

Through Lloyds Bank and Halifax, Lloyds Banking Group is making £2bn available to first-time buyers borrowing more than 4.5x their income to help people get on the housing ladder. 

New estimates show from the Intermediary Mortgage Lenders Association (IMLA) show that over half of first-time buyers (54%) now need a loan of more than 4.5x income, rising to 80% in London. 

As a result, the new 'First-time Buyer Boost' from Lloyds Banking Group introduces an improved loan to income (LTI) multiple for all eligible first-time buyers. This allows them to borrow up to 5.5 times their household annual income, up from 4.49x. 

Based on a household income of £50,000 and a deposit of 10% this will increase the maximum loan available from c£224,500 to c£275,000, a 22% increase.

To qualify for the First-time Buyer Boost, and subject to affordability, customers must have a total employed household income of £50,000 or more, an LTV of up to 90%, and not be using shared ownership or shared equity.

The offer is available across all channels, including via intermediaries, and Lloyds says there are no processing changes or additional steps for mortgage brokers and advisers to deal with.

Andrew Asaam, Homes Director at Lloyds Banking Group, said: “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.”