Lloyds Banking Group PLC (LSE:LLOY) has further stoked the current battle for mortgage lending business by raising the maximum sums it will lend first-time buyers.
Owner of the Halifax and the UK's biggest mortgage provider, Lloyds will now lend up to 5.5 times annual household income to new buyers compared to 4.49 times previously.
Someone with an income of £50,000 can now borrow £275,000 against £224,500 previously or a 22% increase.
Lloyds said the move would mean an extra £2 billion becoming available for first-time buyers.
Brokers said the decision might prompt other lenders to follow suit, though some cautioned it might also raise affordability concerns.
Around 4.5 times income is the norm for first-time buyers but in housing boom times this has risen to as high as seven times income.
Conditions for the Lloyds and Halifax offer however are that the borrower’s annual household income must be at least £50,000 with a minimum deposit of at least at least 10% of the property's value..