Lloyds Banking Group announces £2bn 'First Time Buyer Boost' scheme to provide more mortgages over 4.5x salary
- Lloyds Banking Group makes £2bn* lending available to first-time buyers borrowing between 4.5x salary and up to 5.5x salary
- New loan-to-income ratio designed to boost maximum mortgage loan sizes
- Up to 22% additional lending with First Time Buyer Boost scheme
Lloyds Banking Group has announced it is issuing extra help for first-time home buyers by providing more generous income multiples.
Through Lloyds Bank and Halifax, the UK’s largest lender is making £2bn* available to first-time buyers borrowing more than 4.5x their income to help people get on the housing ladder. In 2023 alone, the bank lent £12bn to first-time buyers.
Rising house prices, cost of living, high interest rates, and affordability challenges mean conditions are the most difficult for many first-time buyers in decades. According to some estimates, over half of FTBs (54%) now need a loan of more than 4.5x income, rising to 80% in London.
First Time Buyer Boost introduces an improved loan-to-income multiple for all eligible first-time buyers, allowing 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:
- Apply for a first-time buyer mortgage with Halifax/Lloyds Bank
- Have a total employed household income of £50,000 or more
- Have a deposit of at least 10% of the property value
- Not be using Shared Ownership or Shared Equity
Aaron Strutt, product director at Trinity Financial, says: “A fair few lenders offer up to 5.5 times salary mortgages, although most want applicants to earn more than £50,000 to qualify for their schemes. Some also require borrowers to take five-year fixes to access the most generous loan sizes."
"Nationwide for Intermediaries has a similar scheme to Lloyds Banking Group. It is called the Helping Hand scheme, and first-time buyers can borrow up to 5.5 times their salary, although, unlike Halifax, they have to take one of the lender's higher five-year fixes.
*Based on current forecasts
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The information contained within was correct at the time of publication but is subject to change.
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