HSBC has increased the maximum lending limits on all flats and new-build properties for residential borrowers.
The bank said the change could help more customers achieve their homeownership goals.
HSBC has increased the lending limit by 5% and will now lend up to 90% loan to value (LTV) on non-new-build flats. This is up from the previous limit of 85%.
It has increased the maximum lending limit from 80% to 85% LTV on new-build flats and 85% to 90% on new-build houses.
HSBC has also got rid of the minimum deposit requirement of £25,000, which was needed to purchase a new-build house.
These changes will apply from today and are available to all residential applicants both through brokers and directly.
Chris Pearson, head of intermediary mortgages at 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.”
Last week, HSBC reduced select mortgage rates and brought in a deal with a rate below 4%.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
