Lloyds Bank Expands £1 Billion Lending Boost for First-Time Buyers, Including Self-Employed

Lloyds Bank is set to introduce significant changes from 5 December 2025, providing a fresh boost for thousands of first-time homebuyers. For the first time, self-employed customers will be able to access the First Time Buyer (FTB) Boost scheme, with loan-to-income (LTI) ratios aligned to those of employed borrowers. This means self-employed buyers with lower deposits can now borrow up to 5.5 times their income.

This development follows Lloyds Banking Group’s announcement to release an additional £1 billion in lending to first-time buyers by lowering the minimum household income requirement for FTB Boost from £50,000 to £40,000. As a result, more aspiring homeowners can benefit from higher borrowing limits through Lloyds or Halifax, the UK’s leading lenders for first-time buyers.

Earlier in April, Lloyds had already increased the borrowing capacity for typical families by approximately £38,000 due to updated affordability assessments. Now, with the enhanced LTI ratio rising from 4.49x to 5.5x, eligible customers see their maximum loan amounts increase by 22%. For example, someone earning £40,000 annually with a 10% deposit can now borrow up to £220,000, compared with £179,600 previously.

Since the launch of First Time Buyer Boost in August 2024, over £8 billion in lending has been pledged, helping more than 15,000 first-time buyers step onto the property ladder more quickly with increased borrowing power.

Andrew Asaam, Homes Director at Lloyds Banking Group, commented, “Our £1 billion expansion brings our total commitment to £9 billion dedicated to helping people get on the housing ladder faster. We understand how important this support is for first-time buyers, having lent more to aspiring homeowners than any other bank this year. We are proud to offer this in a responsible and sustainable way, ensuring better lending decisions for those who can genuinely afford to borrow more.”