The First-time Buyer Boost allows you to borrow up to five-and-a-half times your household annual income, a rise from 4.49 times 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 are making £2bn available to first-time buyers borrowing more than four-and-a-half times 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 offer can be secured through all channels, including phone, online, in branch and through brokers.
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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.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Lloyds Banking Group makes £2bn lending available to first time-buyers needing higher LTI ratios
