HSBC ‘considering tightening mortgage lending criteria’

The Telegraph said the bank is reportedly looking at other ways rising bills and taxes could impact consumers, and in response may impose stricter affordability tests on lending. 

Consumers are set to feel a squeeze on living standards as energy bills are pushed up, National Insurance contributions increase in April and inflation pushes up the cost of living elsewhere. 

A source told the Telegraph that first-time buyers would be impacted, along with anyone borrowing at a high loan-to-value ratio or anyone trying to stretch their income as much as possible. 

In response to the Telegraph’s article, HSBC said: “Mortgage lending decisions are based on affordability. As a responsible lender we keep our underwriting criteria under review and our affordability models are refreshed regularly, taking into account key elements of consumer expenditure.”