HSBC will be changing its maximum term to 40 years as of tomorrow, Wednesday 30th August.
This change will cover all lending types, including purchase, remortgage and additional borrowing.
Residential applications on Capital Repayment will also be able to apply for a maximum term of up to 40 years.
Residential applications on Interest Only products remain capped at 25-year maximum term.
Second homes will no longer be limited to 30 years and can now be considered up to 40 years, while buy-to-let (BTL) applications for all repayment types can also apply for the new maximum term.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “The latest criteria change from HSBC is reflective of the current market conditions, lenders typically have two options to secure business either through rate reductions or relax their criteria to take on extra business.
“By extending the term this will allow more mortgage holder to reduce the impact of higher rates on their mortgage payments, which has extended to purchase, remortgages and those looking at additional borrowing.”
He added: “HSBC’s previous maximum term was 35 years, and the latest move to a 40 year term will bring them in line with the majority of the market and high street competitors.”
