£5bn commitment for first time buyers

Lloyds Banking Group has unveiled the UK's largest commitment to first time buyer lending by confirming it will lend £5bn to first time homeowners by the end of 2012.

In the first six months of the year, the Group has helped over 25,000 people take their first steps onto the property ladder.

The pledge will help over 50,000 people buy their first home by the end of 2012. This figure represents:

One in four first time buyers, making it the largest lender in this market
140 new homeowners every day

The first time buyer commitments are delivered through one of the most comprehensive product propositions in the UK mortgage market:

One in three mortgages on affordable housing schemes are provided by Halifax, including shared ownership and shared equity

A third of all lending on UK new build properties funded by the Group

Halifax provides more than 25% of funding for the NewBuy scheme, working alongside 21 housebuilders, more than any other lender

A maximum loan to value ratio of 90% on the Halifax and Lloyds TSB core product ranges, including on selected new build properties with Halifax

Innovative product design including stamp duty redemption for first time buyers, and refund of valuation fee on failed purchases through Halifax

Lending to borrowers with a 5% deposit through the Lloyds TSB Lend a Hand and Local Lend a Hand schemes.

Stephen Noakes, Mortgage Director at Lloyds Banking Group, commented: "This commitment is not about paying lip service. It shows that we're providing genuine solutions for people buying their first home. It's important that we dispel some of the myths about first time buyer mortgages. People can buy a home with a 10% deposit, or even 5% through the NewBuy scheme."

"Getting things right at the bottom of the ladder has an important knock on effect throughout the chain. With our unrivalled commitment to affordable housing and new build through Halifax, and innovative products such as Lloyds TSB's Lend a Hand, we're not targeting our support at a select few, but making home ownership a reality for a whole generation of buyers."

Halifax and Lloyds TSB last week refreshed their product ranges, reducing product rates including NewBuy and new build by up to 0.20%. From Friday, first time buyers with a 10% deposit can also benefit from £1,000 cashback in Halifax branches.