2 Oct

HSBC's LTV lending is "good news" for all lenders

HSBC's LTV lending is "good news" for all lenders

HSBC's extension of its high loan-to-value lending is "good news" for all buyers - not just those who are looking to acquire their first property.

This is according to Ray Boulger, the senior technical manager at independent mortgage adviser John Charcol.

He said that many homeowners purchased a house within the last few years with a high loan-to-value mortgage and need to borrow at least 90 per cent because they want to move again.

His comments follow an announcement by HSBC that it will extend the lending on its 90 per cent loan-to-value mortgages by 50 per cent, adding an extra £500 million to the £1 billion already borrowed by consumers with ten per cent deposits.

Mr Boulger dismissed the idea that other brokers will follow HSBC's lead and increase their high loan-to-value lending.

"It would have already happened," he stated. "I don't see any reason why [HSBC's actions] would change other lenders' appetites."

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