Among the rate reductions for first-time buyers, the five-year 95% LTV no-fee product falls 0.09% to 5.24%, and the five-year 90% LTV no-fee product drops 0.05% to 4.93%. The two-year 90% LTV no-fee product is down 0.03% to 5.06%. On the purchase side, the five-year 90% LTV product with a £999 fee falls 0.07% to 4.82%, with the Premier equivalent at 4.79% after the same reduction.
Remortgage reductions are more pronounced. The two-year 85% LTV no-fee product drops 0.20% to 5.17%, the five-year 90% LTV no-fee product falls 0.14% to 5.23%, and the five-year 85% LTV Premier product with a £999 fee is down 0.12% to 4.89%. Selected products carry cashback incentives, with higher amounts available on Energy Efficient homes.
The changes follow earlier measures at HSBC UK that include a loan-to-income multiple of up to 5.5 times income for first-time buyers and the rollout of automated remortgages via LMS DART to streamline conveyancing.
“Our enhanced lending limits will open up new opportunities for our customers by increasing the properties available to them,” said Oli O’Donoghue (pictured right), head of mortgages and savings at HSBC UK. “This could mean they are able to buy a property with their dream kitchen, an additional bedroom or in another area.
“The change reflects our desire to help customers achieve their homebuying ambitions, whichever step on the property ladder they find themselves on.”