Rising house prices, cost of living, high interest rates and affordability challenges mean conditions are the most difficult in 70 years for first-time buyers. According to some estimates, over half of FTBs (54%) now need a loan of more than 4.5x income, rising to 80% in London.

Through Lloyds Bank and Halifax, the First-time Buyer Boost is a new step in Lloyds Banking Group’s efforts to help more customers buy their own homes.

The multiple has been increased from a loan-to-income ratio of 4.49.

Based on a household income of £50,000 and a deposit of 10%, this will increase the maximum loan available from £224,500 to £275,000, the bank said.

To qualify for the rate, and subject to affordability, customers must apply for a first-time buyer mortgage with Lloyds Bank or its sister brand Halifax, have a total employed household income of £50,000 or more, have a deposit of at least 10% and not be using shared ownership or shared equity schemes.

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.”

Toby Leek, NAEA Propertymark president, welcomed the announcement: “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.”