HSBC has increased the maximum loan size across different loan to value (LTV) bands.
At 70% LTV, the lending limit has been upped from £2m to over £3m, while at 75% LTV this has risen from a maximum of £2m to £3m.
At 80% LTV, HSBC will lend up to £2m, up from the previous limit of £1m, and at 85% LTV the maximum loan size has gone up from £750,000 to £2m. For flats at 85% LTV, the maximum loan size has gone up to £1m.
The lender will lend as much as £750,000 to borrowers on a mortgage at 90% LTV, up from the previous limit of £550,000.
At 95% LTV, HSBC will lend up to £570,000, from a previous limit of £500,000.
The changes will apply from 10 July.
The lender has also simplified its mortgage rate by removing the 65% and 80% LTV tiers, which it said would allow borrowers to access larger loans at a higher LTV.
Chris Pearson, HSBC UK’s head of intermediary mortgages, said: “The affordability of a mortgage remains at the heart of any mortgage decision, but by increasing the maximum amount of money that can be borrowed as part of a home purchase or remortgage, we will be able to help more customers with their home buying goals.
“We’ve taken on board feedback from brokers and significantly increased the amount that can be borrowed. In the case of mortgages at 85% LTV, the maximum that could be borrowed on a house is an increase of over 150%. This could make the difference between someone being able to buy the property they want or need, or having to compromise by buying a smaller property with fewer bedrooms, or maybe in an area that is outside the catchment area of their preferred school for their children.”
Earlier this week, HSBC lowered mortgage rates for existing borrowers.
Suffolk BS extends offer period to six months
Suffolk Building Society has extended its offer validity period from three to six months, which the mutual said was to reflect market conditions.
This applies to all mortgage products including residential, buy to let (BTL), holiday let, expat and self-build.
Suffolk Building Society will allow brokers to request an additional three-month extension after the initial offer period, as long as there has not been a change to the client’s circumstances.
The mutual said when an offer is made on a fixed rate product, brokers should let clients know this will reduce the length of their initial deal. For example, a six-month offer followed by a three-month extension period will shorten the initial fixed term of a two-year fixed mortgage to 15 months.
Suffolk Building Society said brokers should confirm this with clients.
Charlotte Grimshaw, head of intermediary relations and mortgage sales at Suffolk Building Society, said: “It’s common sense to give both brokers and buyers some breathing room to get their sale across the line. Buying a property, particularly in a chain, is hugely nerve-wracking at the moment, so we’re taking this step to help reduce the stress to all of those involved.
“There’s enough nail-biting when watching the Euros without movers having to worry about whether their offer will expire too.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
