Boost for Homebuyers: HSBC Relaxes Mortgage Criteria

As of July 10, HSBC UK has announced a significant change to its mortgage criteria, removing the 65 per cent and 80 per cent loan to value tiers. This move is expected to have a major impact on the UK housing market, allowing customers to access higher lending amounts at a higher loan-to-value (LTV) ratio.

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.

This change could make all the difference for homebuyers, enabling them to purchase the property they want rather than settling for a smaller one. For instance, a family may now be able to afford a house with an extra bedroom or in a better school catchment area.

Housing market set to boom

Industry experts are hailing this move as a game-changer. Riz Malik, director at R3 Mortgages, notes that the UK mortgage market is gearing up for a frenzy of activity in the second half of the year. Rohit Kohli, Director at The Mortgage Stop, praises HSBC’s confidence in the direction of travel with these changes to their criteria.

These criteria changes should not be underestimated and will give homeowners around the country a real boost.

Emma Jones, managing director at Whenthebanksaysno.co.uk, is enthusiastic about the impact of this change. Simon Bridgland, director at Release Freedom, predicts a very busy second half of the year for the market.

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