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HSBC increases maximum LTV tiers for new build houses and flats

ended 12. August 2024

HSBC has this morning announced that, with immediate effect, it has further enhanced its new build proposition. For Capital Repayment applications, it has increased its maximum LTV tiers for new build houses and flats. It has also increased its maximum LTV tier for Capital Repayment applications on non-new build flats. Non-new build flats rise from 85% LTV to 90% LTV, new build flats rise from 80% LTV to 85% LTV and new build houses rise from 85% LTV to 90% LTV. Newspage asked brokers for their thoughts on whether it shows confidence in the future trajectory of house prices and how could it benefit borrowers? Their views are below.


 

4 responses from the Newspage community

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Patricia McGirrVerified
Founder at Repossession Rescue Network
The recent availability of sub-4% products, along with the ability to borrow more can lull borrowers into stretching themselves and their budgets further. Like an acrobat on a high-wire, it's all about balance. Over-leveraging during the 'good times' has led to stress on many household budgets when things go wrong. The banks and house builders may be open for business, but affordability must still be the benchmark.
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Tony CastleVerified
Managing Director at PFG Mortgages
HSBC increasing its LTVs on new builds suggests it is confident in the future direction of house prices. This is great news for potential purchasers of new build homes, giving them more options with a smaller deposit required. Banks and building societies are ramping up their support of the new build market and it's a win for borrowers.
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Michelle LawsonVerified
Director at Lawson Financial
This is a positive, much awaited and long overdue move from HSBC to bring them into the market supporting first-time buyers.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
HSBC's decision to increase its maximum LTV tiers is a clear signal of confidence in the resilience of the UK housing market, even amidst economic uncertainty. By raising LTV limits, particularly for new builds, HSBC is not only supporting first-time buyers and those with smaller deposits but also betting on the continued demand and stability in house prices. This move could provide a crucial boost to borrowers, making home ownership more accessible and potentially stimulating activity in the property market. It's a bold move that reflects optimism about the future trajectory of house prices.