Within Lloyds’ retail division, growth was driven by UK mortgages alongside its unsecured lending businesses.
An additional £500m of lending has recently been made available through the launch of a £5,000 deposit mortgage scheme aimed at supporting first-time buyers.
Lending rises despite higher impairment charge
Lloyds reported a higher impairment charge during the period, with the underlying impairment charge rising to £617m, compared with £442m in the first half of 2025.
The bank said an impairment charge of £39m for the first half of 2026 was higher than the credit of £133m in the first half of 2025, which predominately benefitted from a favourable update to house prices.
The bank lent approximately £8bn to more than 33,000 first-time homebuyers during the period.
UK mortgage loans and advances to customers totalled £325.5bn as at 30 June 2026. This comprised £275.8bn in mainstream mortgages, £48.1bn in buy-to-let (BTL) mortgages and £1.7bn in specialist mortgages.
This compares with £323.8bn as at 31 December 2025, comprising £273.1bn in mainstream mortgages, £47.9bn in BTL mortgages and £2.8bn in specialist mortgages.
Mortgage accounts more than three months in arrears represented 1% of total mortgage accounts as at 30 June 2026, an improvement from 1.1% at 31 December 2025.
The value of loans more than three months in arrears fell to £3bn as at 30 June 2026, down from £3.4bn six months earlier.
Mortgage book shifts towards higher-LTV lending
As of 30 June 2026, 51.9% of total mortgage balances had a loan-to-value (LTV) ratio of less than 60%, compared with 54.2% on 31 December 2025.
Mortgages with an LTV ratio between 60% and 70% accounted for 15.9% of total balances, down slightly from 16.2% at the end of 2025.
Meanwhile, mortgages with an LTV ratio between 70% and 80% represented 16.4% of total mortgage balances, up from 15.2% six months earlier.
The proportion of loans with an LTV ratio between 80% and 90% increased to 13.4% of total balances as at 30 June 2026, compared with 12.2% on 31 December 2025.
A further increase was recorded in loans with an LTV ratio between 90% and 100%, which represented 2.4% of total mortgage balances, up from 2.2% at the end of 2025.
The average LTV for new residential lending during the period was 66.2%, compared with 64.1% in the previous period.
