HSBC mortgage deals for first time buyers
HSBC is introducing two new mortgage deals aimed at first time buyers as part of its new mortgage range, available from Monday, 13 September. A market leading tracker mortgage, which tracks at 3.69 per cent above the Bank of England base rate (currently 4.19 per cent) and a two year fixed rate deal, which has a competitive rate of 5.09 per cent. Both deals require a deposit of only 10 per cent of the total value of the property and like all the mortgage specials in the new range, have a fee of only £99.
It was announced this year as part of the Budget that stamp duty on property purchases of up to £250,000 would be cut to zero for first time buyers. With stamp duty being reintroduced at the year end, customers who want to take advantage of the zero stamp duty are urged to do so now, while they still can. HSBC is making it even easier for buyers to do this by lowering the fees of its mortgage specials to only £99, thereby alleviating some of the hurdles faced by homebuyers.
Martijn van der Heijden, head of mortgages at HSBC commented: "HSBC is keen to be there for new and existing customers, whether it's for people looking to take their first step on the housing ladder or for people looking to improve on their current deal. We think we can reduce the cost of borrowing for most people and we think that's what people are after in these difficult times.
In addition to the 90 per cent LTV mortgage, HSBC is further extending its 2.19 per cent lifetime tracker, with a low fee of £99, until 31 October 2010. There has been a huge demand for this deal since its launch in August and despite the increased popularity, HSBC continues to approve four out of five mortgage applications.
In 2009 HSBC products appeared over 2200 times in national best buy tables, more than any other financial services provider, according to "The Financial Report" by Kantar Media. This new range of HSBC mortgages shows the bank has maintained its excellent value and continues to top best buy tables.
The range of new loans also includes a five year fix for customers with at least a 40 per cent deposit at an interest rate of 3.94 per cent. The mortgage has an arrangement fee of £99 for all customers.