Lloyds Banking Group has stated that it will make an extra £4bn available in lending to high LTV first-time buyers (FTBs).

The announcement has been made following a review by the Prudential Regulation Authority (PRA) into loan-to-income (LTI) ratio requirements.

Since launching its FTB Boost in August 2024, Lloyds has lent over £4bn to help 11,000 FTBs to get on the ladder by borrowing more than 4.5 times their income.

The group said that boosting its LTI to 5.5 times increases the borrowing amount available to FTBs by 22%, meaning that a household income of £50,000 and a deposit of 10% will increase the maximum loan available from around £224,500 to around £275,000.

The group has therefore extended its FTB Boost product, which is available through Lloyds Bank and Halifax.

The group added that in the two months since it updated its affordability assessments, it has helped more than 1,000 FTBs access a mortgage they would not have qualified for before.

The changes come after the Leeds Reforms, announced earlier this week, allowed for the Bank of England to lend over 4.5 times a FTB’s income, which could allow for an extra 36,000 people to get on the property ladder in the next year.

Homes director at Lloyds Banking Group, Andrew Asaam, said: "Buying your first home can be challenging, but FTB 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 £4bn means we can help even more customers can get the keys to their first home."

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