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2mo ago

Lloyds Injects £4 Billion into 5.5× Income Mortgages for First-Time Buyers

The bank’s boosted scheme enables eligible first-time buyers to borrow up to 5.5 times their income using the existing application process across phone, online, branches, intermediaries.

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Overview

  • The expansion follows new FCA and Bank of England guidance and Labour government reforms that allow higher loan-to-income lending.
  • Lloyds Banking Group will channel an extra £4 billion into high LTI mortgages for first-time buyers through Lloyds Bank and Halifax.
  • The LTI cap increases from 4.5× to 5.5× income, boosting maximum borrowing by 22% and raising the loan for a £50,000 household with a 10% deposit from £224,500 to £275,000.
  • Since August 2024 the scheme has enabled more than 11,000 first-time buyers to borrow above 4.5× their income and could now support about 13,500 additional buyers.
  • To qualify applicants need a combined employed income of at least £50,000, at least a 10% deposit, a loan-to-value ratio up to 90% and must not use shared ownership or shared equity.