Mortgage Finance Gazette
HSBC has launched a range of loan-to-income products set at 5.5 times salary.
The mortgage is available for those who earn over £100,000 per year at up to 90% loan to value. Earnings can include bonuses and commission.
This offer covers a range of the high street bank’s products, including two-year fixed-term deals.
In April, Nationwide also began offering mortgages at an LTI ratio of 5.5 times salary for first-time buyers. Its ‘Helping Hand’ deal is available at up to 90% LTV on the lender’s five- or ten-year fixed-rate mortgages.
Private Finance associate director Chris Sykes says: “While the very low rates on offer grab the headlines, developments such as this actually affect a far greater number of borrowers and there is no differentiation with these rates compared to HSBC’s standard products and thus are market leading at this LTI and LTV.
He adds: “With all these major changes, much like sheep other lenders will follow close behind, so we suspect rates at the 90% LTV range, even at this high loan-to-income ratio will become increasingly competitive.
“Lenders can only do a certain amount of business at high LTIs so that is why they have strict criteria like only for larger earners.”
