Here is a summary of some key changes in the mortgage market this week.
- Scottish Widows Bank has made improvements to its lending policy. With the introduction of improved income/affordability multiples, SWB is moving away from the 4x income cap for lending over £500,000. This applies if a client’s income is over £75,000 and maximum loan to value of 75%. This new approach fits with SWB’s traditional area of catering to 'professionals' (solicitors, accountants, doctors).
- HSBC is another lender cutting rates. As a lender that has traditionally used its rate, first and foremost, to attract business, HSBC has looked at the higher LTV ranges with the latest cuts. A 90% 2-year fixed rate is now 2.19%, so puts HSBC at the better end of market.
- TSB has announced gross mortgage lending of £7bn for 2017, up £400m on the year before. With new lending increasing 6.2% and being advanced to 47,000 borrowers, TSB lent to 28,000 on remortgage and 19,000 on purchase. TSB confirmed average loan to value of 44.2%, which reflects a very healthy lending book. It is hoped this will give TSB confidence to further improve lending policy and increase market share.
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