HSBC cuts mortgage rates by up to 0.20% and increases lending limits
The changes, effective from today (19th August), apply to first-time buyer (FTB), purchase and remortgage products.
HSBC UK has reduced selected mortgage rates by up to 0.20% and increased maximum lending limits across its residential range.
The changes, effective from today (19th August), apply to first-time buyer (FTB), purchase and remortgage products, while the higher lending limits will initially be available for applications submitted through mortgage brokers.
For capital repayment mortgages, the maximum loan at 90% loan-to-value (LTV) has increased from £750,000 to £775,000, although the £750,000 limit remains for flats.
At 85% LTV, the maximum has risen from £2m to £3m, with a £1m limit for flats, while at 75% LTV it has increased from £3m to £5m, with a £3m limit for flats.
For interest-only mortgages at 75% LTV, the maximum lending amount has increased from £2m to £3m, with a £2m limit for flats.
Meanwhile, for first-time buyers, HSBC’s 2-year fixed at 90% LTV with no fee has been reduced by 0.03% to 5.06%, with £350 cashback, increasing to £700 for energy-efficient homes.
Its 5-year fixed at 90% LTV with no fee has fallen by 0.05% to 4.93%, while its 5-year fixed at 95% LTV with no fee has been cut by 0.09% to 5.24%.
For home purchases, HSBC has reduced its 5-year fixed at 90% LTV with a £999 fee by 0.07% to 4.82%. The Premier equivalent has also fallen by 0.07% to 4.79%.
Among its remortgage products, the 2-year fixed at 85% LTV with no fee has received the largest reduction, falling by 0.20% to 5.17%.
The 5-year fixed at 90% LTV with no fee has been reduced by 0.14% to 5.23%, while the 5-year Premier product at 85% LTV with a £999 fee has fallen by 0.12% to 4.89%.
The changes follow HSBC’s introduction of a loan-to-income (LTI) multiple of up to 5.5x salary for first-time buyers and automated remortgages through LMS DART.
Oli O’Donoghue, head of mortgages and savings at HSBC UK, said: “Our enhanced lending limits will open up new opportunities for our customers by increasing the properties available to them.
“This could mean they are able to buy a property with their dream kitchen, an additional bedroom or in another area.
“The change reflects our desire to help customers achieve their homebuying ambitions, whichever step on the property ladder they find themselves on.”
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