HSBC UK has increased its higher loan-to-value (LTV) lending limits on its residential mortgages for all new build properties and all flats, including non-new-build flats.
The new limits were put in place to support first-time buyers and home movers to make their purchase, with the maximum LTV tiers increased by 5% on each property type – bringing in new LTV limits of up to 85% and 90% for all new-builds and flats on repayment mortgages.
The minimum deposit of £25,000 required to purchase a new-build house was also removed.
The new limits, which are available from today (Monday 12th August), apply to all residential applications made through mortgage brokers and from direct applicants.
The maximum tiers on residential applications include 90% LTV tier on non-new-build flats, 85% LTV tier on new-build flats, and 90% LTV tier on new-build houses.
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.”
