Lloyds reduces minimum income requirement for FTB Boost range

Lloyds Banking Group will make a further £1bn of lending available to first-time buyers by reducing the minimum household income required for First Time Buyer Boost (FTB Boost), meaning more people can borrow up to 5.5x their income with Lloyds or Halifax. 

The Group had already increased the amount that a typical family could borrow by around £38,000 as a result of changes to affordability assessments in April. Today’s announcement will see the minimum household income needed to qualify for FTB Boost reducing from £50,000 to £40,000. 

Increasing the loan-to-income (LTI) available for these customers to 5.5x (from 4.49x) will increase the maximum loan available by 22%. For example, a customer with £40,000 income and 10% deposit can now borrow £220,000, up from £179,600. Through this change, another £1bn of mortgage lending is available to first-time buyers. 

Since launching First Time Buyer Boost in August 2024, over £8bn of lending has been pledged to help buyers, with over 15,000 able to get on the ladder quicker through higher LTI lending. 

Self-employed first-time buyers will now also be able to access FTB Boost, with the LTI available for self-employed customers aligned to those who are employed, meaning those with lower deposits will also be able to borrow 5.5x their income. 

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.”