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HSBC UK has introduced a new maximum mortgage loan-to-income (LTI) ratio of up to 6.5 times annual income for its Premier customers. To qualify for HSBC Premier, customers must have an annual income of at least £100,000 paid into an HSBC Premier account, or hold £100,000 or more in savings or investments with the bank. The LTI change means that a Premier customer earning £75,000 per year could borrow up to £488,000 under the new policy, compared with up to £375,000 (5.0 times their income) previously, the bank said. A Premier customer earning £100,000 per year could borrow up to £650,000, compared with up to £550,000 (5.5 times their income) previously. Premier account holders will also need a deposit of at least 10% to potentially be able to borrow the 6.5 times income multiple. Oli O’Donoghue, head of mortgages at HSBC UK, said: “This increase reflects both our confidence in the financial resilience of our Premier customer base and our commitment to responsible, sustainable lending.” Several lenders have made changes in recent months enabling some mortgage customers to borrow more, following moves from regulators. Simon Gammon, managing partner at Knight Frank Finance, said the new income multiple reflects both a more confident regulatory environment “and HSBC’s clear appetite to grow market share”. He said: “The real question is how much this will translate into demand, given the continued uncertainty around potential tax changes in the upcoming Budget.”
