Lloyds commits to lending £5bn to first time buyers

The bank has pledged to lend £5bn by the end of 2012 to first time buyers. This could amount to helping 50,000 people get on the property ladder.

In the first six months of 2012 Lloyds provided mortgages for more than 25,000 first time buyers.

Recent figures from property website Rightmove show that there has been a recent increase in first time buyers, with first time buyers accounting for 27.9% of all buyers.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "It is great to hear that our biggest lender is targeting first-time buyers with a significant commitment of funds.

“First-time buyers have really struggled to get on the housing ladder in the past few years, which in turn has clogged up the rest of the housing market, so any help in getting things moving again is welcome.”

They did however mention that Lloyds required high deposits from first time buyers to qualify for mortgages

Stephen Noakes, Mortgage Director at Lloyds Banking Group disputed this point saying: "This commitment is not about paying lip service.

"It’s important that we dispel some of the myths about first time buyer mortgages.

“People can buy a home with a 10 per cent deposit, or even 5 per cent through the NewBuy scheme. “Getting things right at the bottom of the ladder has an important knock on effect throughout the chain."

Today's Conveyancer