This comes after regulators said lenders would be able to apply to lend more than 15% of residential mortgage business at LTI ratios above 4.5 times income.
Lloyds Banking Group launched its First Time Buyer Boost (FTB Boost) range last year, which has since enabled 11,000 first-time buyers to access mortgages at up to 5.5 times income ratios.
The lender said the recent changes could boost borrowing by 22%, and someone with a household income of £50,000 and a 10% deposit could see their borrowing increase from around £224,500 to £275,000.
Lloyds Banking Group amended its affordability assessments in April and said since the change was made across its brands, more than 1,000 first-time buyers have qualified for a mortgage where they would not have before.
A total of 3,000 borrowers were supported by the change.
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To qualify for the FTB Boost product, borrowers must apply for a first-time buyer mortgage with Halifax or Lloyds Bank, have a household income of at least £50,000 and borrow at up to 90% loan to value (LTV).
Shared ownership or shared equity is not eligible for the product.
Andrew Asaam, homes director at Lloyds Banking Group, said: “Buying your first home can be challenging, but First Time Buyer 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 get the keys to their first home.”
