The change in policy boosts Premier customers’ borrowing power. For instance, a Premier customer earning £75,000 could borrow up to £488,000 under the policy. This is up from £375,000 previously.
A Premier customer earning £100,000 per year could borrow up to £650,000, an increase from £550,000.
For a higher income of £213,000 – which an HSBC survey reveals customers believe is a “wealthy” income – the borrowing potential goes up to £1.38m, which is up from £1.17m.
The updated LTI ratio will come into effect on 3 October for new mortgage applications from eligible Premier customers.
To become a Premier account customer, customers should meet one of the following criteria: have an individual income of at least £100,000 and pay it into the Premier bank account, have savings or investments of at least £100,000 with HSBC in the UK or be already qualified for HSBC Premier in another country.
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The change builds on HSBC’s recent enhancements to its standard mortgage range and First Home mortgage, where LTI limits were upped to 5.5 times salary in some instances.
Oli O’Donoghue, head of mortgages at HSBC UK, said: “We’re committed to supporting customers across all segments of the mortgage market. Earlier this year, we enhanced LTI ratios for standard borrowers, giving more firepower to people looking to buy a home.
“Now, by extending that approach to our Premier customers, we’re helping higher earners unlock greater flexibility to move up the property ladder or secure their next home with confidence.
“This increase reflects both our confidence in the financial resilience of our Premier customer base and our commitment to responsible, sustainable lending.”
