HSBC bucks the trend

Julia Harris, Mortgage Analyst at Moneyfacts.co.uk, comments: “As house prices continue to spiral, and homeownership becomes out of reach for many, lenders creativity in designing products to assist with that first step on the housing ladder must be applauded.

However, our incomes can only be stretched so far before they reach breaking point. And with rising rates, bad debts, and housing prices, how long can this continue?

“HSBC has become of the first large lender to buck the trend of rising LTVs. In its latest product changes it announced that its standard LTVs would fall from 95% to 90%, and that graduates would now be advanced a maximum of 95%, compared to 100% previously.

“So is this a sign of things to come? Will other lenders soon be reviewing in their lending criteria, as they adopt a more cautious approach?