The minimum household income needed to qualify for the First Time Buyer Boost has been cut from £50,000 to £40,000.
This means that more people can borrow up to 5.5 times income, whereas the previous limit for those at this income level was 4.49 times income, and the maximum loan available will go up by around 22%.
For example, a customer with a £40,000 income and 10% deposit can now borrow £220,000, up from £179,600 previously.
Lloyds Banking Group added that self-employed borrowers would also be able to access the First Time Buyer Boost deal, with the loan to income (LTI) available also set at 5.5 times income. Previously, applicants had to be employed to qualify.
The First Time Buyer Boost product was launched in August 2024 and allows borrowers to access up to 5.5 times their income with a 10% deposit or more. At least one applicant has to be a first-time buyer and have a deposit of 10% or more.
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Since the product launched, Lloyds Banking Group said £8bn of lending has been pledged to first-time buyers, with over 15,000 able to get onto the property ladder faster by accessing higher-LTI lending.
Andrew Asaam, homes director at Lloyds Banking Group, said: “Today’s £1bn commitment takes us to a total of £9bn specifically to help people get on the ladder quicker. We understand the difference this can make to first-time buyers, having lent more money to more aspiring homeowners than any other bank so far this year, and we’re really pleased to be able to offer what they need in a responsible and sustainable way. We are making better lending decisions for those who can genuinely afford to borrow more.”
