In a significant policy update, HSBC has announced that starting December 4, it will accept professional consultant's certificates (PCCs) as valid warranties for new build homes in small developments. This move is designed to streamline the mortgage process for properties in developments with up to 10 units, providing a boost to both buyers and developers of new build flats or maisonettes.
The change stipulates that PCCs must cover common parts and structural aspects of the properties involved in new build or conversion works. This ensures that buyers have a warranty on critical elements of their homes, aligning HSBC's criteria with other major lenders in the UK. Nicholas Mendes, mortgage technical manager at John Charcol, expressed approval of HSBC's decision, noting its alignment with the practices of other high street lenders such as Santander (BME:SAN), Halifax, NatWest, Barclays (LON:BARC), TSB, and Nationwide.
Conveyancers play a pivotal role in this updated process by ensuring that the PCCs meet the compliance standards set out in the UK Finance Mortgage Lenders Handbook. This requirement emphasizes the importance of thorough legal checks and balances in the provision of mortgages for new properties.
The revision marks another progressive step by HSBC in its mortgage offerings, following an earlier enhancement in August when the bank extended its maximum mortgage term from 35 to 40 years. These adjustments by HSBC reflect a broader trend among financial institutions to adapt their mortgage criteria to meet evolving market needs and customer demands.
InvestingPro Insights
In addition to the recent policy updates, HSBC's financial performance and market position have also been notable. According to InvestingPro Data, HSBC has a market capitalization of 143320.88M USD and a low P/E ratio of 5.33 as of the last twelve months ending Q3 2023. The bank has also seen a significant revenue growth of 47.98% during the same period.
The InvestingPro Tips highlight that HSBC has been experiencing accelerating revenue growth and consistently increasing earnings per share. The bank has also raised its dividend for three consecutive years, which is a positive signal for investors looking for steady income. HSBC is a prominent player in the banking industry, and its stockholders receive high returns on book equity.
For those interested in the detailed financial performance and more tips on HSBC, InvestingPro offers an extensive list of 10 additional tips and numerous real-time metrics. These insights can help investors make informed decisions and stay updated on the company's financial health and market trends.
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