HSBC UK increases maximum lending tiers on residential mortgages for new builds and flats
The new limits will particularly help first time buyers and home movers to make their purchase, with the new maximum LTV tiers having increased by five per cent on each property type – bringing in new LTV limits of up to 85 and 90 per cent for all new builds and flats on repayment mortgages.
In addition, the minimum deposit of £25,000, required to purchase a new build house has also been removed.
The new limits, which are available from Monday 12 August, apply to all residential applications made through mortgage brokers and from direct applicants.
The new maximum tiers on residential applications include:
- Non-new build flats rising from 85% to 90% LTV tier
- New build flats rising from 80% to 85% LTV tier
- New build houses rising from 85% to 90% LTV tier
Chris Pearson, Head of Intermediary Mortgages, HSBC UK said: “Our priority is to ensure affordability for all our customers, while at the same time helping them onto or up the property ladder. By increasing our maximum lending tiers we are providing more flexibility and support to first time buyers and to those looking to move on to their next property.
“This change reflects our commitment to supporting the diverse needs of homebuyers in today’s market and ensuring that owning a home is within reach for more people. We believe these enhancements will significantly aid our customers in securing their desired properties with greater ease and confidence.”
Media enquiries to:
Becky Hume 07387246305 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
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world’s largest banking and financial services organisations.