HSBC UK is making changes to the stress rates used in its mortgage affordability calculations.
The lender says the change could enable 20,000 more customers to get a mortgage with HSBC alongside being able to borrow larger amounts as part of a mortgage.
The changes come into effect immediately, with mortgages received from 22nd April being subject to the new stress rate calculations. The changes will benefit both purchase and remortgage applications across the product range.
Where offers increase for first-time buyers, HSBC says the average increase in offer will be £39,000.
Oli O’Donoghue, HSBC UK’s head of mortgages, said: "We understand the challenges faced by people looking to secure a mortgage. This adjustment to our stress rates, which will directly improve affordability for many aspiring homeowners, reflects our commitment to making homeownership more accessible.
"By carefully reviewing our affordability calculations, allowing more customers to meet affordability criteria and potentially access increased borrowing amounts, we are aiming to ease some of the pressure on prospective buyers so more people can realise their dream of owning their own home.”
The latest news from HSBC follows Halifax, BM Solutions, Bank of Scotland and Lloyds Bank enhancing their mortgage affordability assessments last week.
