The group, which includes Halifax and Scottish Widows Bank, did not release its gross new mortgage lending for 2019, but said it lent £13.8bn to first-time buyers.
It also cited pressure in the mortgage market for a fall in its net interest margin (NIM) from 2.95 per cent to 2.88 per cent.
And it expects this competition to continue this year as it predicted its NIM for 2020 to continue falling to around 2.75-2.80 per cent.
Its annual results report said the lender had prioritised margin and risk over volume in intermediary mortgages.
Lloyds added that its open mortgage book rose by one per cent to £270.1bn.
The average loan to value (LTV) of new business was 64.3 per cent, with the average portfolio LTV nudging up slightly to 44.9 per cent, while 88 per cent of the portfolio has an LTV of less than 80 per cent.
Expanding digital direct options remain a priority for Lloyds as its remote mortgage applications were up 30 per cent, while remortgage applications started digitally rose 50 per cent in value.
And the group acquired Tesco Bank’s UK residential mortgage book of 23,000 customers for £3.8bn.
As a result of the profit fall, Lloyds chief executive António Horta-Osório took a 28 per cent pay cut to £4.7m, while its bonus pool has been reduced by a third to £310m.
