HSBC has increased the maximum loan to value (LTV) for its part and part lending product, while fellow high street lender Santander has upped its rates.
For HSBC, the maximum LTV has gone from 75 per cent to 85 per cent to “help increase flexibility and provide customers with additional choices around how they manage their repayment options”.
Customers will be able to submit a part interest-only application with additional capital repayment, up to the maximum part and part LTV limit of 85 per cent via a mortgage broker.
As an example, for a loan up to and including £750,000, customers can have 75 per cent interest-only and 10 per cent on capital repayment permitting them to have an 85 per cent LTV on a part and part basis.
Andrew Matson, interim director of mortgage lending at HSBC UK said: “We know that flexibility is key for our customers who take out a mortgage with us, and we are happy to be able to enhance our part and part mortgage lending, allowing customers more flexibility on how they repay their mortgage.”
HSBC has lowered rates twice this month, with sub-four per cent deals available in its first and second batch of rate cuts.
The lender has also hired MPowered Mortgages Emma Hollingworth as its head of specialist lending with a remit to expand its proposition, with a focus on buy-to-let lending.
Santander ups rates and withdraws deals
Santander will increase selected standard residential fixed rates for purchase and remortgage clients by up to 0.2 per cent.
The increases for selected standard residential fixed rates will go up by around 0.05 per cent to 0.2 per cent for purchase and remortgage clients.
Santander has withdrawn all residential first-time buyer exclusive fixed rates with £500 cashback along with its residential 90 per cent loan to value (LTV) no-fee three-year fixed purchase rates at 5.18 per cent.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol said of the rate increase: “This latest repricing from Santander had been expected due to the increase in swaps from when these original deals were priced. Its only a surprise that it’s taken this long.
“I expect we will see a few lenders among the best to make slight adjustments, though this isn’t a long term trend as rates are expected to decrease over the year.”
