HSBC, easily one of the largest mortgage lenders in the United Kingdom recently announced a change in the LTV or loan-to-value maximum on new mortgages. Previously, the standard was 60%. With effect from 6 April, the maximum was increased to 75% on its tracker mortgage, also sporting a 2.95% interest rate.
Along with HSBC, Abbey Mortgages announced an increase to a maximum of 85% LTV, offering first time buyers an attractive 5.84% on a four year fixed rate mortgage. Both offerings have already attracted the attention of consumers and industry experts alike.
The change is envisaged to help maintain the modest momentum recently seen with the real estate market and the approval of mortgages. Simply put, people who would not have qualified under the old maximum now have better chances of obtaining the financing necessary to purchase a home.
There is no clear vision of just how much of an impact the increase will have on the overall mortgage market. However, the hope is that the change will result in more customers for HSBC and Abbey, in turn motivating other lenders to follow suit.
What this means for you is that there is now a renewed hope of owning your own home. While managing a secured loan may have seemed impossible a few months ago, this shift in the LTV may be just enough to make your goal a feasible one after all. Take a moment and look over your budget process, then see what HSBC can do for you. The outcome may be pleasant for everyone concerned.
Tags: Abbey Mortgages, HSBC, loan to value, LTV, mortgage, secured loan
