HSBC has lowered maximum LTVs for flats, new build flats, and for those who wish to borrow more money.

The bank will now lend on flats to a maximum of 85 per cent LTV, on new build flats to 80 per cent LTV, and additional borrowing will be capped at 85 per cent LTV.

As well as this, HSBC now asks that an interest-only mortgage is limited to a maximum of 50 per cent of the value of any investment or stocks and shares Isa being used to repay it, and that borrowers provide a statement dated within the last 35 days.

A mortgage statement dated within the last 35 days will also be needed if the sale of another property is being used.