HUGE BOST FOR FIRST-TIME BUYERS ANOTHER MAJOR LEGER RELXES MERTGAGE RULES – ryan

HSBC SAYS The Change Could Mean 20,000 More Customers Are Able to Get A Mortgage, Alongside Being ABLE to Borrow Large Amounts – and the Avent Increase for FIRST -Time Budes Will Be £ 39,000

11:46, 22 APR 2025Updated 11:46, 22 APR 2025

HSBC HAS ANNUNCED A Major Change to How It Calculates Your Ability to Afford a Mortgage. The High Street Lender is Making Changes to Its Stress Test Rates from Today, for Both Purchase and Remortgage Applications.

A stress test is used to determin where borrower can affford to pay their mortgage if interest rates. This is normal set at a Certain Percentage Point Above the Lender’s Standard Variable Rate (SVR).

HSBC Says the Change Could Mean 20,000 More Customers Are Able to Get A Mortgage, Alongside Being ABLE to Borrow Large Amouns. The average Increata in Offer for first-time buers will be £ 39,000.

Oli O’Donoghue, HSBC UK’S Head of Mortgages, Said “We are wellstand the Challenges Faced by People Looking to Secure a Mortgage. This Adjustment to Our Stres Making Homeownership More Accessible.

“By Carefully Review Our Affordability Calculations, Allowing More Customers to Meet Affordability Criteria and Potentially Access Increated Borrowing Amounts, WE AREE AINTING ONE OF THE PRESSPECTIVE BUYERS SO MORE PEOPLE CAN The Dreams Their Dream Own Home. ”

It comes after the financial conduct authority (FCA) announched it is looking into Simplifying Mortgage rules, after being asked by the government about what steps is taking to help Economic Growth. Mortgage Lending Rules were Toughened in 2015 AFTER THE 2008 FINANCIAL CRISIS.

Santander was the first Major Lender to Reduce Its Stress Test Rates and Said It Means Someone Applying for A Residency Mortgage Can Now Borrowween £ 10,000 More 35,000 More, Depending on Their Individual Circumstances.

Lloyds Banking Group Has Also Reduced the Stress Rates in Its Standard AFFORDABILITY CALCULATION AND ON ITS FIVE-FIXED MORGAGES. and Said It Could Mean Someone Applying for a Mortgage Could Borrow £ 38,000 More. This Includes Lloyds, Halifax, Bank of Scotland and BM Solutions.

Nationwide Has Reduced the Minimum Earnings Required For Its Helping Hand Mortgage. The minimum income has been Lowered from £ 40,000 Back down to £ 35,000. The Building Society Had Increas It to £ 40,000 Back in Januy this Year, so the decreese taxes it back to previous level.

Different Types of Mortgages Explained

If you have a tracker mortgage, it means your deal and monthly repayments move in line with the bank of the England Base Rate. A tracker mortgage usually tracks above the base rate. If you have a standard variable rate (SVR) Mortgage THEN YOUR DEAL CAN Change at any time, though they do roughly tbi to move in line with the basis.

Svrs are generaly the most expensive type of mortgage. If you have a fixed rate mortgage, it means you have aggreed to pay a fixed amout each month for a set period of time. You are normally Moved to your lender’s svr when your Fixed Deal Ends. If your mortgage is due to expira, you show Compare Rates Now and Speak to A Mortgage Broker to Look at Your Options.

Generally Speaking, Lenders Let You Secure A New Deal Around Three Months in Advance. If Rates come down, you may be able to the Cancel the deal you’ve aggregated to and sign up to a cheaper rate – but check with your batch before signing first to see if there are any Fees.