Total mortgage balances were up by £5.4bn to £299.2bn, driven by the £6bn rise in open mortgage book lending.
The lender said it was on track to deliver £10bn of first-time buyer mortgages in 2021, with £3.8bn written in Q1.
The group cited a solid financial performance in the quarter, with “balance sheet momentum” driven by mortgage lending.
The bank enhanced its guidance for the year, due to the improved operating environment, though it said uncertainties remained.
The group’s mortgage lending was characterised by low loan to value deals (LTV) on the whole.
Overall, the average LTV for a mainstream mortgage was 42.7 per cent, buy to let 49.9 per cent and for a specialist loan, 40.5 per cent.
This worked out at 43.7 per cent LTV on average, compared to 43.5 per cent for the year 2020, down from 55.6 per cent in 2010.
For new business, the average LTV was 62.2 per cent for mainstream loans and 60.3 per cent on buy to let. That represented 61.9 per cent LTV across all new business for Q1, compared to 63.9 per cent in 2020 and 60.9 per cent in 2010.
Some 91.9 per cent of loans stood at less than 80 per cent LTV, while 7.6 per cent were in the 80 to 90 per cent LTV bracket.
At 90 to 100 per cent LTV, there were just 0.2 per cent of loans.
Overall, Lloyds reported profits before tax of £1.4bn compared to £74m during the same period last year.
António Horta-Osório, outgoing group chief executive, said: “The long-run transformation of the group has positioned the business well to address the challenges of the pandemic.
“It is with both pride and sadness that I will step down as group chief executive later this month. Most importantly, the group is well placed for sustainable success and the publication of Strategic Review 2021 in February shows that the group has clear execution outcomes for 2021, underpinned by long-term strategic vision.”
