HSBC has standardised its mortgage lending rules so that foreign and UK nationals are treated the same.
The change in policy means foreign nationals will have access to more lending tiers through their mortgage broker.
The bank is now offering up to 95% loan to value (LTV) to any borrower with leave to remain in the UK or who has EU settled status.
Enhanced loan to value
Under previous rules, to access the 95% LTV range, both borrowers applying for a mortgage had to have leave to remain in the UK or have EU settled status. This has been reduced to one borrower.
Other changes to the bank’s lending policy for foreign nationals include increasing LTVs from 75% LTV to 85% LTV for foreign nationals without permanent residency. They must be able to prove they have lived in the UK for a minimum of one year, or evidence they have a minimum income of £75,000 a year or a joint annual income of £100,000.
Introducing the Green Living Reward
Your clients can now get up to £2,000 cashback for making energy-efficient home
Sponsored by Halifax Intermediaries
The bank will also spell out which types of visas are eligible to apply for a mortgage, making its criteria clearer.
Rules around borrowing for debt consolidation have been brought into line with domestic policy, both of which are subject to additional checks and controls. This means both UK and foreign nationals could apply for lending to help consolidate debt.
This is the second criteria change made the bank in the last two months. In August, HSBC upped its LTVs on non-new-build flats, new-build flats and new-build houses.
Chris Pearson (pictured), head of intermediary mortgages, HSBC UK, said: “Helping our customers purchase a property is priority for us. We want to be as open and accessible as possible to all of our customers. Our enhanced mortgage lending policies for foreign nationals reflects our commitment to supporting those on their journey to property ownership, by ensuring they have the financial tools necessary to invest in a UK property.”
Applications must be made through a mortgage broker.
