Lloyds sets aside extra £4bn for high-LTI mortgage lending

Lloyds Banking Group is making an extra £4bn of lending available to high loan-to-income (LTI) first-time buyers following recent mortgage lending reforms.

The Group will extend its First Time Buyer Boost offering which is available through Lloyds Bank and Halifax.

Since launching FTB Boost in August 2024, over £4bn of lending has already helped 11,000 first-time buyers get on the ladder by borrowing more than 4.5x their income.

Increasing the LTI to 5.5x increases the available borrowing by 22% for first-time buyers; a household income of £50,000 and a deposit of 10% will increase the maximum loan available from c£224,500 to c£275,000.  

Since LBG applied clarified rules on mortgage stress testing in April, it has already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they would not have qualified for before. 

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 £4 billion means we can help even more customers get the keys to their first home.”