A change in tone - HSBC launching 90% LTV @ 4.59%

themanbearpig

The key word is upto 90%.

Open to HSBC Plus account and Premier customers. - So they are cherry picking, and only lending to the high earners, that are unlikely to default. Not the average £35,000 a year customer.
Nothing will change. They arn't going to lend 5x salary to someone earning £20k a year, and the average person still wont be able to get a mortgage.

Really2

themanbearpig wrote: »

The key word is upto 90%.

Open to HSBC Plus account and Premier customers. - So they are cherry picking, and only lending to the high earners, that are unlikely to default. Not the average £35,000 a year customer.
Nothing will change. They arn't going to lend 5x salary to someone earning £20k a year, and the average person still wont be able to get a mortgage.

Indeed they do HSBC are shrewed but I love them. Thank you FD for my .49 tracker lifetime tracker and honoring it.

But you could pay for one of those accounts if you had to.

The secret to hsbc is

GET THEIR PRODUCTS AT FIRST DIRECT.;)

Conrad

themanbearpig wrote: »

The key word is upto 90%.

Open to HSBC Plus account and Premier customers. - So they are cherry picking, and only lending to the high earners, that are unlikely to default. Not the average £35,000 a year customer.
Nothing will change. They arn't going to lend 5x salary to someone earning £20k a year, and the average person still wont be able to get a mortgage.

I agree, but you have to acknowledge this is a departure from the recent lending landscape, a change in direction.

This portends gradual lending relaxation.
Self cert lending is available right now, small scale, but it will return with a vengance within 24 months - imagine all those soverign wealth funds hungry for high yields, which self cert, indeed sub prime lending can bring. Don't confuse CDO's / packaged sub prime mortgage packages with straight forward sub prime lending, where for example a Quatari SVF can lend to UK borrowers at high rates and keep a direct link by simply holding these on thier books. The default rate is still low on UK sub prime and less than 1% actualy get repossessed.

The investors risk is thus low, can be controlled directly and even in the event of default the bulk of the debt can be recovered. As this bottoms out investors will begin picking at the carcass.