HSBC has amended its rates with both increases and cuts to select products, as well as updating its booking fee policy.
With immediate effect, HSBC will allow booking fees to be capitalised with the total lending amount and enable the overall loan to value (LTV) to exceed the selected product and policy restrictions.
This will apply in circumstances where adding the fee has breached the LTV but will not be allowed where this goes over 95% LTV.
Previously, when a booking fee was capitalised with the total loan, this had to be within LTV restrictions.
The change is applicable to residential and buy-to-let (BTL) mortgages and HSBC will assess affordability against the total loan amount, including capitalised fees.
Also taking effect from today are some rate changes.
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The lender has reduced select two-year fixed rates across its standard and fee-saver options at 60%, 70% and 75% LTV, while select two-year fixed rates at 80%, 85% and 90% have gone up, as well as certain five-year fixed rates.
HSBC’s recent Q3 financial figures showed its performance during the quarter was bolstered by mortgage lending in the UK.
