Prime Minister Robert Abela has appealed for banks to refrain from raising interest rates for property buyers.

Abela commented on a story reported by Times of Malta, which read that HSBC bank had doubled its minimum home loan down payment and increased interest rates for a home loan.

The story read that the bank would require first-time buyers to provide 20% of the property value upfront when applying for a loan, when previously, it accepted minimum down payments of 10%. Information on HSBC's website also showed that the bank had increased its interest rates for such loans, with first-time buyers being charged an annual percentage change rate of 3.1% over the term of their loan, as opposed to the 2.7% the bank previously charged, the newspaper said.

Asked about this during a press conference, Abela said that there are a number of other banks in the country that did not raise their interest rates or increase the minimum down payment. He said that he had only learnt about the changes on Thursday. "Buyers who are looking into a home loan have other alternatives, and at the same time, I appeal for other banks to refrain from doing what HSBC has done," Abela commented.

Later in the day, in a company announcement, HSBC Malta said: "With reference to recent reports in the local media referring to a change to HSBC Bank Malta p.l.c.'s ('the Bank') home loan terms and conditions. The Bank would like to clarify to the market that it continues to offer home loans in line with its proposition up to a maximum of 90% Loan-to-Value, while continuing to align to its risk appetite and credit criteria. The Bank's official website has been updated to this effect."