HSBC mortgage move ‘has wide benefits’

The recent decision by HSBC to extend it s provision of mortgage finance at 90 per cent loan-to value (LTV) has been welcomed as not just good news for first-time buyers.

Senior technical manager at mortgage brokerage John Charcol, Ray Boulger, said home-movers will also benefit from the decision.

“There are a lot of people who bought a property within the last few years with a high loan-value mortgage who want to move and need to borrow at least 90 per cent again,” he observed.

At present, HSBC has an ability to offer such loans that the part-nationalised banks cannot match, Mr Boulger stated.

Announcing the decision earlier this week, HSBC head of mortgages Martijn van der Heijden said the bank had originally set aside £1 billion for lending to first-time buyers at 90 per cent LTV for 2009.

This is being increased by £500,000 as that original figure has now been reached, he revealed.

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