HSBC RE-ENTERS UAE MORTGAGE MARKET
HSBC, mortgage, Middle East, UAE

HSBC’s Middle East division has re-entered the UAE mortgage market with the introduction of three new products for domestic and international investors.

Having previously pulled out of the mortgage market due to the credit crunch, the bank is now offering buyers 75% LTV finance on completed villas, 70% LTV mortgages on key-ready apartments and 50% LTV options for off-plan units.

Until the move, HSBC had lowered the LTVs available down to 50% on all types of properties, as banks across the region worked to lessen their exposure to the market.

"HSBC continues to be a responsible lender and as such the offer is primarily targeted at end-users who have recently faced acute difficulties getting affordable mortgage finance," said Abdulfattah Sharaf, CEO, Personal Financial Services, Middle East, for HSBC. "This move will provide more flexibility and choice for our customers who are looking to own a home.”

Under the terms of the new property finance deals, applicants must earn a minimum of Dh20,000 per month. The maximum loan term is five to 25 years or until the borrower reaches the age of 65, which ever occurs first and interest will start from 8.5%, on a variable rate.