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HSBC raises income multiple to 5.5 for high-earning borrowers
HSBC has increased the loan to income multiple to 5.5 for borrowers earning £100,000 or more across its entire range up to 90 per cent loan to value (LTV).
The update will come in on Monday. It is up from five times income borrowers in this bracket were previously able to borrow.
Over the course of this year, a number of lenders have increased the income multiples for those on higher salaries.
This included Metro Bank which widened borrowing limits for those earning more than £100,000 to five times their income. Barclays also adjusted its limits, allowing customers with a gross income of £75,000 to borrow up to five times their income. This was a similar move to Ipswich Building Society, which raised multiples to 5.5 for those earning £75,000 and more per year.
Speaking to Mortgage Solutions, HSBC said despite the change it would still look at all applications individually to ensure affordability is met.
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