How much can I borrow with HSBC? Mortgage lending limits increased
Quick Summary
HSBC has increased several of its maximum residential mortgage loan and loan-to-value limits, potentially helping homebuyers and remortgage customers looking to borrow larger amounts. For capital repayment mortgages, the maximum loan at 90% LTV rises from £750,000 to £775,000, with a £750,000 cap retained for flats. At 85% LTV, the limit increases from £2 million to £3 million, subject to a £1 million ceiling for flats, while the 75% LTV maximum moves from £3 million to £5 million, with flats capped at £3 million.
HSBC can be particularly attractive for higher earners and borrowers looking to maximise affordability, although the amount available depends on income, outgoings, deposit, credit commitments and the mortgage term. Trinity Financial's brokers can calculate how much you could borrow with HSBC and compare its affordability with other banks, building societies and specialist lenders to find out which lender is prepared to offer you the largest suitable mortgage. LTV = (Loan Amount ÷ Property Value) × 100.
How much can I borrow with HSBC? Mortgage lending limits increased
HSBC has increased a number of its maximum mortgage loan and loan-to-value limits, potentially making it easier for borrowers to secure larger mortgages on houses.
The changes could be particularly useful for homebuyers looking for £750,000, £1 million, £2 million or larger mortgages, as well as borrowers with smaller deposits who want to understand how much HSBC may be prepared to lend.
HSBC has also recently reduced selected residential mortgage rates, making the lender increasingly competitive for borrowers looking for both larger loans and higher income multiples.
How much can I borrow with an HSBC mortgage?
The amount HSBC will lend depends on a combination of your income, deposit or equity, existing financial commitments, mortgage term, credit profile and the property you are buying.
HSBC does not simply apply one income multiple to every applicant. Its affordability assessment considers income alongside committed expenditure, household costs and existing credit commitments. However, some borrowers can potentially access particularly generous income multiples.
Eligible HSBC Premier customers may be able to borrow up to 6.5 times their income at up to 90% LTV, subject to affordability and HSBC's lending criteria.
Qualifying first-time buyers may also be able to borrow up to 5.5 times their income where they meet HSBC's minimum income and LTV requirements. This means HSBC can be worth considering for higher earners, professionals, first-time buyers and borrowers looking to maximise their mortgage affordability.
HSBC mortgage borrowing examples
The table below gives an indication of the mortgage size different income multiples could potentially generate. These are illustrations rather than guaranteed borrowing figures.
| Household income | 4.5x income | 5x income | 5.5x income | 6.5x income |
|---|---|---|---|---|
| £50,000 | £225,000 | £250,000 | £275,000 | £325,000 |
| £75,000 | £337,500 | £375,000 | £412,500 | £487,500 |
| £100,000 | £450,000 | £500,000 | £550,000 | £650,000 |
| £125,000 | £562,500 | £625,000 | £687,500 | £812,500 |
| £150,000 | £675,000 | £750,000 | £825,000 | £975,000 |
| £200,000 | £900,000 | £1,000,000 | £1,100,000 | £1,300,000 |
| £250,000 | £1,125,000 | £1,250,000 | £1,375,000 | £1,625,000 |
| £300,000 | £1,350,000 | £1,500,000 | £1,650,000 | £1,950,000 |
For example, someone earning £100,000 could potentially borrow £450,000 at 4.5 times income, while an applicant qualifying for 6.5 times income could theoretically borrow up to £650,000. The actual mortgage offered may be lower because HSBC carries out a full affordability assessment.
HSBC's new maximum mortgage and loan-to-value limits for houses
| Mortgage amount |
Deposit for capital repayment |
Deposit for interest-only | Minimum deposit for part repayment/part interest-only |
|---|---|---|---|
| Up to £570,000 | 5%* | 25% | 15% |
| Up to £775,000 | 10% | 25% | 15% |
| £775,000 to £3 million | 15% | 25% | 15% |
| £3 million to £5 million | 25% | 35% | 25% |
| Over £5 million | 30% | 35% | 30% |
*For remortgages, applicants need a 10% deposit.
These limits are subject to valuation and HSBC's normal lending and affordability criteria. The changes currently apply to houses, rather than flats, where separate HSBC lending limits continue to apply.
Can HSBC lend £775,000 with a 10% deposit?
Potentially, yes. HSBC's revised lending limits mean it can consider a capital repayment mortgage of up to £775,000 at 90% LTV on an eligible house.
A £775,000 mortgage at 90% LTV would equate to a property valued at approximately £861,000, requiring equity or a deposit of around £86,000.
This could be particularly useful for buyers in London and other higher-value areas who have strong incomes but comparatively modest deposits.
Can HSBC lend £1 million or more?
Yes. For a capital repayment mortgage on a house:
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Loans between £775,000 and £3 million may potentially be available up to 85% LTV.
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Loans from £3 million to £5 million may potentially be available up to 75% LTV.
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Loans above £5 million may potentially be available up to 70% LTV.
HSBC's published residential criteria state that there is no overall maximum residential loan amount, provided the application meets its other lending requirements. This can make HSBC worth considering for borrowers looking for particularly large residential mortgages.
How much income would I need for a £1 million HSBC mortgage?
The income required depends heavily on which HSBC affordability rules and income multiple apply. As a simple illustration:
| Mortgage required | At 4.5x income | At 5x income | At 5.5x income | At 6.5x income |
|---|---|---|---|---|
| £500,000 | £111,111 | £100,000 | £90,909 | £76,923 |
| £750,000 | £166,667 | £150,000 | £136,364 | £115,385 |
| £1 million | £222,222 | £200,000 | £181,818 | £153,846 |
| £1.5 million | £333,333 | £300,000 | £272,727 | £230,769 |
| £2 million | £444,444 | £400,000 | £363,636 | £307,692 |
Again, these figures are illustrations. HSBC's affordability assessment also considers expenditure, debts, dependants, mortgage term and other financial commitments.
A Trinity Financial broker can run an HSBC affordability calculation to establish a much more accurate borrowing figure before you make an offer on a property.
How much can HSBC Premier customers borrow?
HSBC Premier can be particularly attractive for higher earners looking to maximise their mortgage borrowing. Under HSBC's current published criteria, eligible Premier account holders can potentially access a maximum income multiple of 6.5 times income at up to 90% LTV, subject to affordability.
This could make a significant difference to borrowing capacity. For example:
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£100,000 income × 6.5 = £650,000
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£150,000 income × 6.5 = £975,000
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£200,000 income × 6.5 = £1.3 million
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£250,000 income × 6.5 = £1.625 million
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£300,000 income × 6.5 = £1.95 million
Not every Premier borrower will qualify for the maximum amount, and HSBC will still assess affordability in detail.
How much can a first-time buyer borrow with HSBC?
HSBC can also offer enhanced borrowing to eligible first-time buyers. Qualifying first-time buyers with at least one applicant earning the required minimum income may be able to access borrowing of up to 5.5 times income at 90% LTV or below.
This could help buyers who have sufficient income to support their monthly mortgage payments but find that a standard four or 4.5 times income calculation does not provide enough borrowing to purchase the property they want.
Why have HSBC's higher mortgage limits improved?
Aaron Strutt, product director at Trinity Financial, says: "Increasing the maximum borrowing available at higher loan-to-values gives HSBC greater flexibility and makes it easier for buyers to secure sufficiently large mortgages. It also helps the bank lend more money."
"This is particularly relevant in London and the South East, where buyers can require mortgages well above £750,000 even when purchasing relatively mainstream family homes. For example, increasing the 90% LTV limit to £775,000 allows borrowers to potentially purchase houses valued at around £861,000 with a 10% deposit, subject to affordability.
"The higher 85% LTV limit of £3 million could also make HSBC more competitive for borrowers purchasing substantially more expensive properties without needing to provide a 20% or 25% deposit."
Want to know how much HSBC could lend you?
If you are buying a property, remortgaging or looking for a larger mortgage, contact Trinity Financial and ask one of our brokers to run an HSBC affordability calculation. We can compare HSBC's borrowing figure with other leading banks and specialist lenders to determine how much you may be able to borrow and which mortgage best suits your circumstances.
Our brokers can assess:
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How much you could potentially borrow with HSBC;
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Whether you may qualify for a higher HSBC income multiple;
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Whether HSBC Premier could increase your borrowing capacity;
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The deposit or equity required under HSBC's new LTV limits;
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Whether capital repayment, interest-only or part-and-part borrowing is suitable;
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And whether another lender could offer a larger mortgage or a more competitive rate.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
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