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HSBC to raise new-build LTV to 85% in next few months

HSBC is planning to increase the maximum LTV on new-build mortgages from 75% to 85% LTV in the next couple of months.

The lender believes valuations in the market have stabilised and it is now safe to raise its LTV.

Q1 was HSBC’s best ever quarter as it lent £4.9bn overall and £1.2bn to first-time buyers.

It has now lent a third of its annual target of £15bn, although it believes lending was higher in Q1 because of the Stamp Duty holiday and doesn’t believe it took more market share.

John Wakefield, manager at New Home Mortgage Services, says: “Raising LTVs is one way for lenders to support the new-build market but it would be better if it was higher than 85% as many borrowers struggle to raise a 15% deposit.”


Sub-prime RMBS remain stable

The performance of the UK non-conforming residential mortgage-backed securities market remained stable over the three-month period ending February 2012, according to Moody’s.

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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