HSBC set to raise new-build LTV to 85%

HSBC is planning to increase its maximum LTV on new-build mortgages from 75% to 85% LTV.

The lender believes valuations in the market have stabilised and it is now safe to raise its LTV and is committed to doing so in the coming months.

HSBC had its best ever quarter of mortgage lending in Q1 this year when 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.