Lloyds Sees Surge in Mortgage Lending and Digital Growth in 2025
Lloyds Banking Group has just shared some pretty impressive news about its mortgage business, and it’s definitely turning heads in the financial world. In the first half of 2025, the banking giant reported a 14% jump in new mortgage lending, reaching £5.6 billion. That’s a significant increase compared to the same period last year, and it’s showing just how active the mortgage market has been, even amid economic shifts.
In total, Lloyds’ mortgage balances now stand at a massive £317.9 billion. A lot of that growth has been driven by homebuyers pushing to complete purchases before the recent stamp duty changes that took effect at the end of March. So, there was a bit of a rush earlier this year that helped boost those numbers.
First-time buyers have been a big part of that momentum. Around £8 billion was lent to new homeowners in just six months leading up to June. That’s not just good news for Lloyds, but also a clear sign that people are still eager to get on the property ladder, even in a changing market.
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What’s also worth noting is how Lloyds is using technology to stay ahead. Their new digital remortgage process has really taken off, and it’s helping push more customers toward using mobile-first banking services. As a result, the bank's direct-to-bank mortgage business now makes up about a quarter of its total mortgage operations — that’s a four-point jump in market share. Pretty significant in such a competitive space.
Another positive sign is in protection products — essentially, insurance taken out alongside mortgages. Lloyds saw a 20% take-up rate for these services, which is a 7% increase from the previous year. So not only are more people borrowing, but they’re also thinking about long-term security.
Financially, things are looking solid too. Pre-tax profits rose by 4% to £2.5 billion. That growth came not just from mortgages but also from corporate and institutional banking. And even after tax, profits still hit £2.5 billion, slightly up from last year.
CEO Charlie Nunn highlighted how strong financial performance has been made possible by a focus on cost control, asset quality, and solid income growth. He also welcomed recent moves by the UK government, including financial reforms and an updated industrial strategy, saying they support a stable economic environment.
Thanks to this strong half-year showing, Lloyds has increased its interim dividend by 15% and is sticking firmly to its 2025 outlook — all while staying confident about hitting its ambitious 2026 goals.
So, in short, Lloyds is showing resilience, innovation, and momentum — all of which are keeping investors and customers paying close attention.
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