It increases the maximum loan-to-value by 5% for each property type
After making rate cuts to its mortgage products last week, HSBC UK has now raised its loan-to-value (LTV) limits on residential mortgages for new build properties and flats.
The move, expected to broaden access to homeownership, will benefit first-time buyers and homemovers by increasing LTV limits by 5% for each property type.
Under the new terms, LTV limits for non-new build flats will rise from 85% to 90%, while new build flats will see an increase in maximum LTV from 80% to 85%. New build houses will now have a maximum LTV limit of 90%, up from 85%.
One of the UK’s largest mortgage lenders, HSBC has also removed the minimum deposit requirement of £25,000 for purchasing a new build house.
The updated lending limits apply to all residential applications submitted through mortgage brokers as well as direct applicants.
HSBC has recently launched a new mortgage deal with a sub-4% fixed interest rate, positioning itself strategically in a market where mortgage rates have declined following the Bank of England’s base rate cut earlier this month.
“Our priority is to ensure affordability for all our customers, while at the same time helping them onto or up the property ladder,” said Chris Pearson, head of intermediary mortgages at HSBC UK. “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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
