HSBC UK has increased the maximum amount that can be borrowed across hundreds of residential mortgages.
From today (Wednesday 10th July), increased amounts of borrowing have been made available on the lender’s residential home purchases and remortgages.
The bank also simplified its mortgage range by streamlining its loan-to-value (LTV) tiers, removing the 65% LTV and 80% LTV tiers, making it possible for customers to access higher lending amounts at a higher LTV.
The maximum lending limits will initially be available to applications through mortgage brokers.
As part of the changes, 95% LTV mortgages increased from £500,000 to £570,000, 90% LTV mortgages increased from £550,000 to £750,000, 85% LTV mortgages increased from £750,000 to £2m and 75% LTV mortgages increased from £2m to £3m.
Lastly, 70% LTV mortgages also increased to lending over £3m.
Chris Pearson, HSBC UK’s head of intermediary mortgages, said: “The affordability of a mortgage remains at the heart of any mortgage decision, but by increasing the maximum amount of money that can be borrowed as part of a home purchase or remortgage, we will be able to help more customers with their home-buying goals.
“We’ve taken on board feedback from brokers and significantly increased the amount that can be borrowed.
“In the case of mortgages at 85% LTV, the maximum that could be borrowed on a house is an increase of over 150%.
“This could make the difference between someone being able to buy the property they want or need, or having to compromise by buying a smaller property with fewer bedrooms, or maybe in an area that is outside the catchment area of their preferred school for their children.”
