Lloyds Banking Group makes £2bn lending available to first time-buyers needing higher LTI ratios
Halifax has brought out a First-time Buyer Boost deal that offers improved loan-to-income (LTI) ratios to select borrowers.
The First-time Buyer Boost allows them to borrow up to 5.5x household annual income, a rise from 4.49x income.
Assuming a household income of £50,000 and deposit of 10%, this will boost the maximum loan available from £224,500 to £275,000.
The LTI ratio boosts mean that Lloyds Bank and Halifax is making £2bn available to first-time buyers borrowing more than 4.5x income. In 2023, the bank lent £12bn to first-time buyers.
To qualify for the First-time Buyer Boost, borrowers need to apply for a first time buyer mortgage through Halifax or Lloyds Bank, have a total employed household income of £50,000 or more, a loan to value (LTV) of up to 90% and not use shared ownership or shared equity.
The lender said that there were no processing changes or additional steps for brokers.
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.
“Becoming a homeowner is one of the most fundamental things you can do to secure your long-term financial future, but it’s not easy. First-time Buyer Boost aims to make this journey easier by helping people make their income go even further.”
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