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HSBC tightens 5.5 times salary mortgage rules

Aaron Strutt Image

HSBC for Intermediaries has raised the size of the deposit borrowers need to secure its 5.5 times salary mortgages.

The bank previously provided 5.5 times salary mortgages to borrowers with a 10% deposit but now requires applicants to have a 20% deposit.  

Aaron Strutt, product director at Trinity Financial, says: "Lots of banks and building societies are offering income stretch mortgages to professionals and higher earners with larger deposits.

"Our brokers can access 5.5 times salary mortgages to first time buyers with a 5% deposit providing they have a minimum income of £37,000 or earn £55,000 for joint applicants. Also 5.5 times salary for next time buyers earning £75,000 with a 15% deposit.

"Santander provides 5.5 times salary mortgages for borrowers remortgaging to the bank providing they are not raising any more money."

How does HSBC work out how much you can borrow?

HSBC uses different income multiples to work out how borrowers can raise for a mortgage depending on the amount they earn and the size of their deposit.

The minimum income multiple is 4.49x salary, increasing to 4.75x up to a maximum 5.5x salary. 

Loan-to-value   

Joint income

Maximum income multiples

<=80%

<£50,000

4.49x salary

>=£50,000 to <£100,000

4.75x salary

>=£100,000

5.50x salary

>80%

All incomes

4.49x salary

Source: HSBC for Intermediares

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

As seen in
sunday times telegraph financial times bbc news the express the times
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