HSBC and Yorkshire exit the interest-only market

HSBC and Yorkshire Building Society made substantial changes to their interest-only lending policies on Wednesday, just after the chancellor delivered the Budget. From Sunday 25 March, all lenders across the Yorkshire Building Society brands will stop offering interest-only mortgages. This includes: Chelsea Building Society, Norwich & Peterborough, Barnsley Building Society and Accord Mortgages. From next week, HSBC customers wanting to take an interest only mortgage will need to deposit savings or investments of at least £50,000 or have an individual income of at least £100,000. Aaron Strutt, a broker at Trinity Financial, says: “We still have access to a number of large high-street lenders offering interest-only, but they are under increasing pressure to stop lending this type of mortgage.” Private banks continue to lend interest-only mortgages to high-net worth borrowers. March 22, 2013