First time buyer boost from Lloyds means you could borrow more for your mortgage

Lloyds Banking Group, which includes Lloyds Bank and Halifax, has made £2 billion of lending available to first time buyers. Here’s how it could help you.

Saving up for your first home? If you’re a first-time buyer you could be able to borrow up to 5.5 times your annual household income to get on the property ladder, thanks to a new deal from Lloyds Banking Group.  

This is a rise from the previous loan-to-income ratio of 4.49.

With the new First-time Buyer Boost, if you had a household income of £50,000, for example, and had saved a deposit 10% towards your first home, the maximum you could borrow would now be £275,000 instead of £224,500.

To support this move, the bank has made £2 billion of lending available.

This development is great news for those currently saving to get on the property ladder, and experiencing the difficulty of balancing property prices against household income to secure a mortgage.

Matt Halder of Threshold Mortgages says: “The introduction of the Halifax First Time Buyer Boost clearly shows Lloyds’ and Halifax’s continued support for first time buyers.”

“This increase in lending, especially when considering recent rental increases, provides a perfect time for first time buyers to make the step towards purchasing their first new home.”

“The  decision has encouraged other lenders to follow suit and also offer improved lending options for first time buyers.”

To qualify for the new First-time Buyer Boost, you’ll need to apply for a first-time buyer mortgage with either Lloyds Bank or Halifax, have a household income of at least £50,000 and a deposit of at least 10%. It’s also not applicable if you’re using shared ownership or shared equity.

For more information about how we can support you on your first homebuying journey, visit our website.