HSBC is increasing its maximum loan-to-value ratio on newbuild mortgages from 75 per cent to 85 per cent.
The move, which will come into effect in the next couple of weeks, is to compensate for the fact the bank does not have a dedicated product for the Government’s mortgage indemnity scheme NewBuy.
HSBC spokesman James Thorpe says the bank has seen demand for newbuild mortgages, particularly from firsttime buyers. He says: “There is
a definite appetite for us to help more first-time buyers. We have not got a NewBuy product yet so this is moving in that direction. We have always been a supporter of the scheme and we are working towards having a product for it but we have no timescale yet.”
HSBC has earmarked £15bn of mortgage lending for 2012, with £3bn reserved for firsttime buyers. Lentune Mortgage Consultancy director Stuart Gregory says: “It can only be a good thing to see lenders help first-time buyers in this way but it would be good to see the product available to intermediaries.”