Boost for UK Housing Market as HSBC Introduces New Mortgage Criteria

HSBC’s new mortgage criteria is set to boost the UK housing market.

The wait for England’s trophy may have ended in disappointment, but the UK housing market is in for a treat. HSBC UK has announced new mortgage criteria rules, effective from July 10, aimed at boosting the UK housing market. The changes will see the bank remove the 65 per cent and 80 per cent loan to value tiers, allowing customers to access higher lending amounts at a higher LTV.

Chris Pearson, HSBC UK’s head of intermediary mortgages, stated, “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.”

A Game-Changer for Homebuyers

The impact of these changes cannot be overstated. As Chris Pearson emphasized, “We’ve taken on board feedback from brokers and significantly increased the amount that can be borrowed. In the case of mortgages at 85 per cent LTV, the maximum that could be borrowed on a house is an increase of over 150 per cent.”

This means that potential homebuyers will have more opportunities to secure their dream homes. As Pearson put it, “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.”

Calculate your mortgage options with the new HSBC criteria.

Industry experts are optimistic about the implications of these changes. Riz Malik, director at R3 Mortgages, noted, “The UK mortgage market seems to be getting ready for a frenzy of activity in the second half of the year. If the Bank of England gives us good news on August 1, the rest of 2024 could be stellar.”

A Confidence Boost for the Sector

The new criteria also signal HSBC’s confidence in the direction of the UK housing market. Rohit Kohli, Director at The Mortgage Stop, observed, “HSBC signals their confidence in the direction of travel with these changes to their criteria. This is just as big news as interest rate reductions and often gets missed by borrowers when considering their mortgage options.”

Emma Jones, managing director at Whenthebanksaysno.co.uk, commented, “These criteria changes should not be underestimated and will give homeowners around the country a real boost. Rate cuts often dominate the headlines but today it’s the turn of criteria. Hats off to HSBC.”

HSBC’s new mortgage criteria is a welcome boost to the UK housing market.

As Simon Bridgland, director at Release Freedom, noted, “The market is rampant with change. It is shaping up to be a very busy second half of the year. The seemingly small change for HSBC will send echoes around the market about its belief in the sector, as will the rate drops we are seeing hourly at the moment.”

With HSBC’s new mortgage criteria, the UK housing market is poised for a significant boost. As the market continues to evolve, it’s essential for homebuyers and brokers alike to stay informed about the latest developments and take advantage of the opportunities that arise.