HSBC confirms that it will participate in HM Treasury’s Help to Buy scheme, extending its current range of mortgages to include 90% to 95% Loan To Value (‘LTV’).

High LTV lending funding

HSBC has made close to £5bn available for mortgages above 75% LTV in 2013 and plans to allocate a similar amount in 2014.


All HSBC mortgage borrowers are currently assessed for affordability at an interest rate significantly in excess of the Bank of England base rate. In order to further protect our customers opting for a 90% to 95% LTV mortgage, HSBC will ask them to acknowledge a repayment illustration, which will provide a helpful indication of what their increased monthly mortgage payment would be when interest rates rise.

Antonio Simoes, CEO of HSBC in the UK said:

We want to support our home owning and home buying customers and recognise that particularly for first time buyers, building the necessary deposit can be a real challenge. HSBC already offers some of the most competitive higher LTV mortgages in the market and currently promise to beat or match rates from our high street competitors at 90% LTV. By participating in Help to Buy, we will go further and offer mortgages up to 95% LTV.”

HSBC © The Economic VoiceAll 90-95% LTV mortgages will only be sold on an advised basis in the bank’s branch network, and, in line with all HSBC mortgages, will not be offered through mortgage brokers. HSBC believes this direct approach ensures that it is able to provide the right products and great value to its customers.

HSBC’s policy of no interest-only lending on mortgages above 75% LTV means that our Help to Buy mortgages will be available on a capital repayment basis only.

HSBC is planning to offer Help to Buy mortgages between 90% and 95% LTV later this year.

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