The lender exceeded its commitment to the government to lend £23 billion to homeowners for the year to 28 February 2011, doing one in five of all mortgages in the UK last year.
Gross new mortgage lending was £30 billion compared to £34.7 billion in 2009 while £5 billion was lent to first time buyers with eight in 10 first time buyer applications being approved.
Despite this, the group’s share of gross mortgage lending in 2010 was 22.1% down from 24.1% in 2009.
Borrowers sitting on the lender’s standard variable rate accounted for 48% of outstanding mortgage balances with 70% of new mortgage lending for house purchase rather than remortgaging.
The average loan to value on new mortgage lending in the year was 60.9% up from 59.3% for 2009, while the average indexed LTV on the mortgage portfolio was 55.6%.
The lender said 13% of borrowers had an LTV higher than 100%, broadly the same as 2009 but the value of these loans with more than three months arrears had risen by £0.2 billion to £3.2 billion, accounting for 0.9% of the total book.
The number of borrowers falling into arrears also remained broadly stable over the year, it said, now being well below the peak in H2 2008. LBG warned it expected this to rise in 2011 due to continuing strain in the economy.
Eric Daniels, group chief executive of Lloyds, said: “2010 was an important year for Lloyds Banking Group marking our return to profitability and a further reduction in risk in our business. Our significant progress in the year has positioned the Group well to become the best bank in the UK for all our stakeholders, including our customers, shareholders and employees.”