The bank said the change could help more customers achieve their homeownership goals. 

HSBC has increased the lending limit by 5% and will now lend up to 90% loan to value (LTV) on non-new-build flats. This is up from the previous limit of 85%. 

It has increased the maximum lending limit from 80% to 85% LTV on new-build flats and 85% to 90% on new-build houses. 

HSBC has also got rid of the minimum deposit requirement of £25,000, which was needed to purchase a new-build house. 

These changes will apply from today and are available to all residential applicants both through brokers and directly. 

Sponsored

Introducing the Green Living Reward

Your clients can now get up to £2,000 cashback for making energy-efficient home

Sponsored by Halifax Intermediaries

Chris Pearson, head of intermediary mortgages at HSBC UK, said: “Our priority is to ensure affordability for all our customers, while at the same time helping them onto or up the property ladder. By increasing our maximum lending tiers, we are providing more flexibility and support to first-time buyers and to those looking to move on to their next property.

“This change reflects our commitment to supporting the diverse needs of homebuyers in today’s market and ensuring that owning a home is within reach for more people. We believe these enhancements will significantly aid our customers in securing their desired properties with greater ease and confidence.”

Last week, HSBC reduced select mortgage rates and brought in a deal with a rate below 4%.