HSBC warns customers as it introduces new 'limit' starting 'this week'

HSBC UK has issued a warning to customers over a new "limit". HSBC UK has increased its lending limits on most residential mortgages to "help more customers achieve their home ownership goals, particularly in higher cost areas," it says.

HSBC UK is increasing the maximum amount that can be borrowed on hundreds of mortgages. The changes, which come into effect on Wednesday 10 July, increase the amount of borrowing available on residential home purchases and remortgages.

The bank is also simplifying its mortgage range by streamlining its LTV tiers, removing the 65% LTV and 80% LTV tiers, making it possible for customers to access higher lending amounts at a higher LTV. The new maximum lending limits will initially be available to applications through mortgage brokers.

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The uplift on lending capital repayment mortgages include 95% LTV mortgages increasing from £500,000 to £570,000 and 90% LTV mortgages increasing from £550k to £750,000 as well as 85% LTV mortgages increasing from £750,000 to £2m (increased to £1m for flats), 75% LTV mortgages increasing from £2m to £3m and 70% LTV mortgages increased to lending over £3m.

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.”