Overview
- The higher multiple is available only to HSBC Premier customers, who must have at least £100,000 in annual income paid into a Premier account or £100,000 in savings or investments with the bank.
- Borrowers need a minimum 10% deposit and will face stringent affordability checks, according to HSBC.
- The shift follows Financial Conduct Authority guidance that reduced some lender stress-test constraints and a Bank of England review of the 15% cap on high loan-to-income lending.
- Housing affordability pressures underpin the changes, with reports noting the average home in England cost 7.7 times the average full-time salary last year.
- Nationwide expanded its interest-only offering and widened acceptable repayment vehicles, making the range available via brokers to first-time buyers subject to income thresholds.