HSBC is increasing its maximum loan-to-value (LTV) on its Part and Part lending product to allow customers to borrow more on a capital repayment basis.
The increase from 75% to 85% aims to help increase flexibility and provide customers with additional choices around how they manage their repayment options.
Customers will be able to submit a part Interest Only application with additional Capital Repayment, up to the maximum Part and Part LTV limit of 85% through their mortgage broker.
For example, for a loan up to and including £750,000, customers can now have 75% on Interest Only and 10% on Capital Repayment, allowing them to have an 85% LTV on a Part and Part basis.
Andrew Matson, interim director of mortgage lending at HSBC UK said: “We know that flexibility is key for our customers who take out a mortgage with us, and we are happy to be able to enhance our Part and Part mortgage lending, allowing customers more flexibility on how they repay their mortgage.”
