The rise in lending meant that one in five of all mortgages advanced to UK borrowers last year came from LBG with £11.9bn of lending offered to first-time buyers translating into over 89,000 mortgages.
Lloyds said it is the largest participant in the Help to Buy mortgage guarantee scheme lending £1.9bn through the scheme last year; the reason for the slight increase in its loan-to-value (LTV) on new lending, which rose from 64% to 64.8%.
The average LTV on the existing mortgage book fell to 49.2% compared to 53.3% in 2013. The percentage of closing loans and advances which sat at 100% LTV fell from 5.4% in 2013 to 2.2% last year.
Over the next three years the group expects to grow its net lending in its key customer segments by over £30bn which it said comprises growth in line with the market in retail mortgages. This is coupled with increases in net lending of £3bn in both its SME and mid markets segments.
LBG said it intends to focus on selling its standalone protection products through investment in digital solutions and through the adviser distribution channel alongside branch protection advice for mortgage applications.
The group withdrew standalone protection advice through retail branches in November.
