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

The bank lent first-time buyers £12 billion last year, and has now said it is making available £2bn to allow eligible buyers to borrow 4.5 to 5.5 times their annual income.

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.

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.”