HSBC UK increases lending limits on most residential mortgages
The changes, which come into effect on Wednesday 10 July, increase the amount of borrowing available on residential home purchases and remortgages. The bank is also simplifying its mortgage range by streamlining its LTV tiers, removing the 65% LTV and 80% LTV tiers, making it possible for customers to access higher lending amounts at a higher LTV.
The new maximum lending limits will initially be available to applications through mortgage brokers.
The uplift on lending capital repayment mortgages include:
- 95% LTV mortgages increasing from £500,000 to £570,000
- 90% LTV mortgages increasing from £550k to £750,000
- 85% LTV mortgages increasing from £750,000 to £2m (increased to £1m for flats)
- 75% LTV mortgages increasing from £2m to £3m
- 70% LTV mortgages increased to lending over £3m
Chris Pearson, HSBC UK’s Head of Intermediary Mortgages, said:
“The affordability of a mortgage remains at the heart of any mortgage decision, but by increasing the maximum amount of money that can be borrowed as part of a home purchase or remortgage, we will be able to help more customers with their home-buying goals.
“We’ve taken on board feedback from brokers and significantly increased the amount that can be borrowed. In the case of mortgages at 85% LTV, the maximum that could be borrowed on a house is an increase of over 150%. This could make the difference between someone being able to buy the property they want or need, or having to compromise by buying a smaller property with fewer bedrooms, or maybe in an area that is outside the catchment area of their preferred school for their children.”
Media enquiries to:
Becky Hume +44 (0)7387 246305 becky.louise.hume@hsbc.com
Email: UKPressOffice@hsbc.co.uk
Notes to editors:
HSBC UK
HSBC UK serves over 14.7 million active customers across the UK, supported by 23,700 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring fenced bank and wholly owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,001bn at 31 March 2024, HSBC is one of the world’s largest banking and financial services organisations.