Lloyds Bank has announced a major expansion of its support for first-time buyers, injecting a further £1 billion into mortgage lending and making it easier for thousands to get on the property ladder.
Key Changes for Aspiring Homeowners
The significant shift comes into effect on 5 December 2025. From next Friday, the minimum household income required to qualify for the bank's First Time Buyer Boost (FTB Boost) will be reduced from £50,000 to £40,000.
In a parallel move set to benefit the self-employed, Lloyds will now assess their income for the FTB Boost product on the same terms as employed applicants. This crucial alignment means self-employed first-time buyers will also be able to access a Loan to Income (LTI) ratio of 5.5 times their earnings, a substantial increase from the previous 4.49 times.
What This Means for Your Borrowing Power
The impact of this change is substantial. Increasing the LTI to 5.5x boosts the maximum loan available by approximately 22%.
For a practical example, a customer with a £40,000 income and a 10% deposit will now be able to borrow up to £220,000. Before this change, the maximum loan available for the same customer would have been just £179,600—an increase of over £40,000 in potential buying power.
This follows another change made by Lloyds in April, which previously increased the borrowing capacity for a typical family by around £38,000 through updated affordability assessments.
A £9 Billion Commitment to First-Time Buyers
Andrew Asaam, Homes Director at Lloyds Banking Group, emphasised the scale of the commitment. "Our £1 billion commitment takes us to a total of £9 billion specifically to help people get on the ladder quicker," he stated.
He added, "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. We're making better lending decisions for those who can genuinely afford to borrow more in a responsible and sustainable way."
Since its launch in August 2024, the First Time Buyer Boost initiative has already facilitated over £8 billion in lending, helping more than 15,000 people purchase their first home sooner through higher LTI lending.
