HSBC Lifts Borrowing Limit to 6.5× Salary – But Only for £100k+ Earners

HSBC has unveiled a new lending policy allowing its Premier customers to borrow up to 6.5 times their annual salary, marking one of the highest income multiples available in the UK market. The move gives high earners the potential to boost their borrowing capacity by more than £200,000, offering greater flexibility for home purchases and remortgages. However, the offer is exclusive to those earning at least £100,000 annually or holding equivalent savings or investments with HSBC, showing how lenders are competing for affluent borrowers as rate cuts draw closer.

Under the revised criteria, a Premier customer earning £100,000 could now borrow up to £650,000, compared to £550,000 previously. Those earning £200,000 could access up to £1.3 million. The new terms apply to both home purchases and remortgages, with borrowers eligible at just a 10% deposit or equity. HSBC said the change is designed to help financially stable customers move up the property ladder with more confidence while maintaining sustainable lending standards.

Oli O’Donoghue, Head of Mortgages at HSBC, stated that this policy “reflects both our confidence in the financial resilience of our Premier customer base and our commitment to responsible, sustainable lending.” Borrowers opting for the maximum loan multiple must fix their mortgage for five years, offering payment certainty as rates begin to stabilise following the Bank of England’s recent decision to hold base rates at 4%.

Mortgage experts say HSBC’s change makes it one of the most generous lenders in the market. However, they urge borrowers to be cautious when committing a large portion of their income to repayments. A customer earning £100,000 who borrows the full £650,000 at 4.27% could face monthly repayments of around £3,527 approximately 62% of their take-home pay. While the new lending cap increases affordability on paper, borrowers must carefully assess long-term financial resilience, especially in single-income households or those with fluctuating earnings.

According to Aaron Strutt of Trinity Financial, “This income-stretch mortgage is punchy to say the least and borrowers will really need to think carefully before they take on such a big income multiple.” Still, the shift represents a significant step in lender confidence, following the FCA’s recent move to ease post-crisis lending restrictions, enabling banks to offer more flexibility in assessing affordability.