Principality makes increases in PT range; HSBC announces rate reductions – round-up
Principality for Intermediaries has announced rate increases to its product transfer range.
Principality has increased rates by 0.1 percentage points across its residential range, including all two-, three- and five-year fixed rate products at 65%, 75%, 85% and 90% loan to value (LTV). Rates on all two-year tracker products at 65%, 75%, 85%, 90% and 95% LTV have also risen by 0.1 percentage points.
Within its new-build range, rates on two- and five-year fixed rate shared ownership products at 95% LTV have also increased by 0.1 percentage points.
Principality has also extended the changes to its lettings range, having raised rates by 0.1 percentage points on its buy-to-let (BTL) and holiday let offerings, including all two- and five-year fixed rate products at 60% and 75% LTV, as well as two-year fixed rate products at 85% LTV.
HSBC makes rate reductions and increases lending limits
HSBC has increased its maximum lending limits across a number of LTV tiers for capital repayment and interest-only mortgages.
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For capital repayment mortgages, the maximum loan size at 90% LTV has risen from £750,000 to £775,000, although the £750,000 cap for flats remains unchanged.
At 85% LTV, the maximum lending amount has increased from £2m to £3m, with a £1m limit continuing to apply to flats. Meanwhile, the maximum loan size at 75% LTV has increased from £3m to £5m, while the cap for flats remains at £3m.
HSBC said the new lending limits reflect the growth in house prices since the bank’s previous increases to lending limits in 2024 and will increase the range of properties available – mainly in areas with higher property prices.
For interest-only mortgages, HSBC has raised the maximum loan size available at 75% LTV from £2m to £3m, with the limit for flats unchanged at £2m.
Alongside the lending changes, HSBC has cut rates across selected first-time buyer, purchase and remortgage products.
For first-time buyers, the largest cut was to its five-year fixed rate mortgage at 95% LTV with no fee, which decreased by 0.09 percentage points to 5.24%. It comes with £1,500 cashback, rising to £2,000 for energy-efficient homes.
Within its purchase range, HSBC has reduced its five-year fixed rate mortgage at 90% LTV with a £999 fee by 0.07 percentage points to 4.82%, including £350 cashback, rising to £700 for energy-efficient homes.
For remortgage borrowers, the largest cut was made to its two-year fixed rate deal at 85% LTV with no fee, reduced by 0.2 percentage points to 5.17%, which includes £350 cashback for energy-efficient homes.
Oli O’Donoghue, head of mortgages and savings at HSBC UK, said: “Our enhanced lending limits will open up new opportunities for our customers by increasing the properties available to them.
“This could mean they are able to buy a property with their dream kitchen, an additional bedroom or in another area.
“The change reflects our desire to help customers achieve their homebuying ambitions, whichever step on the property ladder they find themselves on.”
