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HSBC introduces daily limits and pauses 95 per cent LTV apps

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  • 06/04/2020
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HSBC introduces daily limits and pauses 95 per cent LTV apps
HSBC has sent a note of reassurance to its brokers letting them know it remains open for business across its loan to value (LTV) ranges, but has introduced daily limits on product availability.

 

It is also placing all applications over 90 per cent LTV on hold until physical valuations are possible.

Many banks have withdrawn lending above 60 per cent or 75 per cent LTV because of a shortage of staff to process cases and the restriction on physical valuations during the outbreak of Covid-19.

Lloyds Banking Group withdrew lending above 60 per cent LTV across its intermediary mortgage ranges but reintroduced them up to 80 per cent LTV for Halifax Intermediaries less than a week later.

 

Daily limits

To cope with demand, HSBC has set daily limits on the amount of business it can accept. When the limits have been reached it may need to restrict access to its mortgage range for the rest of that day.

Remote valuations are being used where possible. Applications for lending above 90 per cent LTV and new-build properties will be placed on hold until physical property valuations are given the green light.

The note was sent to its 180 broker partners and 13,500 individual brokers.

HSBC UK head of buying a home Michelle Andrews (pictured) said: “The financial services industry and property market are facing challenges that we haven’t seen before. But buying a home is still important to many people as is remortgaging if people are coming to the end of a fixed rate deal.

“We remain open for business and we want to support our customers and the housing market. Our mortgage range across all LTVs is still available and open for applications, and we aren’t seeing upward pressure on pricing.”

Andrews added: “We will, of course, continue to review the situation regularly and hope it isn’t too long before the market returns closer to normal.”

HSBC UK is also taking part in the scheme to provide customers with a three-month extension on their mortgage offer.

 

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