Multiple that boosts mortgage borrowers buying power a sign of optimism
HSBC UK has increased its maximum loan-to-income ratio to 6.5 times annual earnings for its Premier mortgage customers, signalling renewed confidence among major lenders in the resilience of higher-earning borrowers.
The change lifts the bank’s previous ceiling of 5.5 times income and could see a customer on £100,000 now eligible for up to £650,000 in borrowing, compared with £550,000 under the former policy. A Premier client earning £75,000 could access £488,000, up from £375,000. Borrowers will still need a 10 per cent deposit and must qualify for the Premier tier by earning or holding at least £100,000 in income, savings or investments with the bank.
Confident regulatory backdrop
Brokers said the move reflects a more relaxed regulatory mood and a measure of optimism in the mortgage market as rates ease. David Titherington of The Mortgage Station observed that “it’s just confident regulatory climate”, noting that the criteria limit the product to borrowers who are unlikely to struggle with affordability. “It’s a pretty safe bet,” he said. “You’ve got to be earning at least £100k or have £100k in savings [or] investment with HSBC in order to get a Premier account so the cliental this will be open too aren’t likely to have any issues affording it.”
The move has also been seen as a bold competitive step. Harry Arnold of Anderson Harris said: “I think many in the sector are surprised to see HSBC leap ahead of its peers with a very aggressive lending offering for high earning Premier customers. This puts them at the forefront of the mortgage criteria wars that has erupted since the FCA loosened the regs on banks income multiples. 6.5x is a serious multiple and gives the bank a real edge when attracting high earners for their products in a very competitive market.”
Macro perspective and market signal
For Guy Nyirenda of Altura Mortgage Finance, HSBC’s decision is a welcome statement of intent from a major player. He said it is “great to see such a significant lender choose to increase their lending parameters, which will help borrowers reach their mortgage requirements.” Although the offer is currently confined to higher earners, he argued that it “demonstrates and reinforces the sentiment that banks are confident enough to loosen the purse strings in a falling rate environment.”
Nyirenda added that HSBC’s global reach provides it with “a unique perspective that spans many countries, which allows them at a macro level, to assess the UK market and the strengths within it.” He expressed hope that this confidence might spread to the wider market, “to allow more borrowers, in other demographic groups, access to more affordable mortgage levels.”
He also noted that “it has been the case for a while that many borrowers can afford larger mortgages, only to have restrictive LTI’s and higher stress-tests reduce their borrowing ability,” describing HSBC’s move as an encouraging sign that “in a falling rate environment, banks [are] taking up the challenge of further supporting the mortgage market.”
Wider industry context
The change follows a broader pattern of lenders revisiting affordability parameters as the cost-of-funding pressures ease. This week, Nationwide Building Society widened its interest-only proposition to include first-time buyers and to recognise a broader range of repayment vehicles, from pension pots to investment portfolios and second properties.
For brokers, HSBC’s recalibration of its income multiple underscores a quiet but distinct shift in the market: an emerging willingness among large institutions to back strong-profile clients with greater leverage. If similar confidence takes hold across the high-street lenders, 2026 could see a gradual re-expansion of borrowing capacity, tempered, as always, by the regulator’s watchful eye.
