Lloyds commits £6.5bn to first-time buyers this year

The bank said it expected 60,000 people would be in their first home by the end of the year and has raised the bar from the £5bn first-time buyer lending commitment it made last year.

Lloyds Banking Group said its brands already provide a third of all mortgages on affordable homes in the country.

The lender also contributes more than 40% of the funding for the government-backed NewBuy scheme and has now collaborated with 42 housebuilding firms.

Lloyds's pledge comes as the firm's Bank of Scotland brand launches products as part of the MI New Homes scheme for the first time. Products for the Scottish equivalent of NewBuy will be available via selected intermediaries from today.

The bank also said it would continue to offer loans up to 90% LTV through its Halifax and Lloyds TSB product ranges, with 30 councils now involved with the Lend a Hand and Local Lend a Hand schemes.

Stephen Noakes, mortgage director at Lloyds Banking Group, said: "Our range of products is continuing to make home ownership a reality for so many first time buyers.

"The recovery in the housing market rests on growth in the wider economy. Whilst the property market is likely to continue to be challenging, we remain committed to getting things right at the start of the chain, creating liquidity in the housing market and helping more people get on to the property ladder in 2013.

"Through our unrivalled commitment to affordable housing and new build schemes through Halifax, and innovative products such as Lloyds TSB's Lend a Hand, we're offering real solutions for those with smaller deposits."