HSBC mortgage LTV to be raised for new-builds.
A recent HSBC mortgage announcement has been made advising that the lender is planning to increase its maximum LTV levels for new-build mortgage products.
HSBC mortgage deals will now be offered for new-build at the much improved level of 85%. This is a 10% increase on the previous level which is good news for many would-be home-owners looking for a deal.
The lender says it believes valuations in the property market have now stabilised and therefore it now views it safe to raise loan to value levels. HSBC advise that they are totally committed to increasing levels over the coming months.
HSBC released figures showing that it had its best quarter of mortgage lending ever, in the first three months of this year. HSBC mortgages to the value of £4.9 billion were lent, including £1.2 billion to first-time UK buyers.
A third of its target £15 billion for the year has already been lent, lending was probably higher in the first quarter because of the end of the Stamp Duty concession, it is not therefore believed that the lender's market share has increased.
HSBC's head of lending Martijn van der Heijden has suggested that the market is shaping up with improved property surveying practices which are leading to improved and more stable house valuations.
Martijn van der Heijden reported that Q1 of 2012 was HSBC's strongest ever quarter of mortgage lending. He attributed the increased in lending to standard variable rate hikes by other lenders which boosted HSBC mortgage lending by almost a third on the last quarter of 2011.
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