Lloyds bank: lender boosts first-time buyer loans to 5.5x income to make homeownership easier - how to apply

• A major UK lender ow allows first-time buyers to borrow up to 5.5 times their income
• With a household income of £50,000 and a 10% deposit, the maximum loan available from Lloyds Bank rises to £275,000.
• To qualify, applicants must apply through Lloyds Bank or Halifax
• They must have a combined income of at least £50,000 and provide a 10% deposit
• Lloyds is also allocating £2 billion to support first-time buyers borrowing more than 4.5 times their income

One of the UK’s major lending institutions is now allowing first-time buyers to borrow up to 5.5 times their income.

Lloyds is hoping the move will help to assist more people in getting onto the property ladder. The amount you can borrow compared to your income has been raised to the higher ratio from 4.49.

That means that with a household income of £50,000 and a 10% deposit, the maximum loan available will rise from £224,500 to £275,000, the bank said.

To qualify, customers must apply for a first-time buyer mortgage with Lloyds Bank or its sister brand Halifax, have a combined employed household income of at least £50,000, provide a deposit of at least 10%, and not be using shared ownership or shared equity schemes, subject to affordability checks.

The bank also said it is allocating £2 billion for lending to first-time buyers who need to borrow more than 4.5 times their income.

Andrew Asaam, homes director at Lloyds Banking Group, said: “Getting the keys to a first home is a big deal, but it’s tough right now.

“Aspiring homeowners have been struggling with house prices rising faster than their wages. They need to save for a deposit, keep up with rent, and choose the right mortgage.”

The news means that first-time buyers can now borrow a larger amount of money relative to their income, making it easier for them to secure a mortgage and buy a home.

By allowing a higher borrowing multiple, the maximum loan amount you can get increases, meaning you can afford more expensive homes without needing a much larger deposit.

Toby Leek, NAEA (National Association of Estate Agents) Propertymark president, said: “It is encouraging to see banks offering help to first-time buyers at a time when many continue to struggle to take their first step onto the housing ladder, and it will be interesting to see what long-term benefits this scheme may generate.”

What do you think about Lloyds' new lending limits for first-time buyers? Will this change make a difference in your home-buying journey or for someone you know? Share your thoughts and experiences in the comments section.