The high street lender is changing the amount people can borrow on its home loans
HSBC has said affordability tests will remain the same, but that these new limits mean some households may be able to consider a bigger range of properties From Wednesday, the high street lender is upping the maximum amount people can borrow on hundreds of its home loans.
But HSBC’s affordability criteria will remain the same, meaning that the changes will generally benefit those on higher salaries.95 per cent LTV mortgages increasing from £500,000 to £570,00085 per cent LTV mortgages increasing from £750,000 to £2m will remain the same, but that these new limits mean some households may be able to consider a bigger range of properties.
“This move will make HSBC’s core range available to a much broader range of borrowers,” added David Hollingworth of L&C Mortgages, though he said some other lenders offered similar limits to the ones HSBC was introducing. This means for someone with a 5 per cent deposit, they would usually need around £120,000 as a household income to borrow £570,000, although higher amounts can sometimes be possible.
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