HSBC Offers Premier Customers Mortgages Up to 6.5 Times Income in UK

HSBC has introduced a new mortgage lending policy allowing its Premier customers, who earn at least £100,000 annually or hold equivalent savings, to borrow up to 6.5 times their income, a significant increase from the typical 4.5 times cap seen across most lenders. This move positions HSBC as the most generous high street lender in terms of income multiples, surpassing rivals such as Nationwide and Halifax, and reflects a broader regulatory shift encouraging banks to lend more to stimulate homeownership. The offer requires a minimum 10% deposit and is limited to loans with a maximum 90% loan-to-value ratio, aiming to support high earners in accessing larger mortgages amid affordability challenges in the housing market. Mortgage experts have praised HSBC's competitive stance but caution borrowers to consider the financial risks of high income multiples carefully. The policy change follows adjustments by the Financial Conduct Authority and the Bank of England to loosen post-financial crisis lending restrictions, intending to boost market activity without threatening financial stability. Industry analysts note that while the new policy may increase demand, uncertainties such as upcoming tax changes could influence its overall impact.