Over the last 12 months, the Lloyds (LSE:LLOY) share price has enjoyed a pretty remarkable rally. After years of hovering between 40p and 50p, the bank stock finally broke free and climbed by over 20% since last April (40% if we ignore the recent tariff-induced sell-off).

With economic conditions in the UK steadily improving and interest rates falling, the housing market is starting to heat back up. That’s given Lloyds a welcome boost to its mortgage business, along with a general rise in borrowing demand from businesses, all translating into a larger loan book.

Considering these trends are expected to continue throughout 2025, is the Lloyds share price on track to climb even higher? Or…