Propertymark backs bank's bid to turn renters into first time buyers

Propertymasrk has thrown its weight behind Lloyds Banking Group making £2 billion of lending available to first time buyers borrowing more than 4.5 times their income .

Through Lloyds Bank and Halifax, the group’s so-called First-time Buyer Boost introduces an improved loan-to-income multiple for all eligible first time buyers, allowing them to borrow up to 5.5 times their household annual income, up from 4.49 times.

According to some estimates, over half of FTBs (54%) now need a loan of more than 4.5 times income, rising to 80% in London. 

To qualify , customers must apply for a FTB mortgage with Halifax or Lloyds Bank, have a total employed household income of £50,000 or more, have a loan-to-value on their chosen property of up to 90% ,and not be currently using shared ownership or shared equity.

Lloyds Banking Group lent £12 billion to FTBs in 2023 and its home director Andrew Asaam says: “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.”

Toby Leek, Propertymark President, comments: “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. We now need to see more homes being built in order to keep up with rising demand as this will bring down prices in the long-term and make homeownership more affordable for all."