HSBC sees increase in applications from First Time Buyers

Stuart Beattie, head of mortgages at HSBC commented, "Although today's decision by the Monetary Policy Committee was expected, homeowners will still be relieved that interest rates have been kept on hold.

Following strong demand from first time buyers in January, we have broadened our range of offers to help customers with smaller deposits to step on to the housing ladder for the first time.  We have introduced a range at 85% LTV with lower interest rates starting at 3.49% for a 2 year Discount mortgage with a £99 booking fee.  This complements our best buy 90% LTV products that are already proving popular with first time buyers."

The new mortgage range follows the success of the January Sale, where HSBC saw its mortgage sales more than double during the first five weeks of 2011 compared to the same period in 2010.  This has been due to a surge in the number of mortgages approved for first time buyers as well as those remortgaging from other lenders.

The current range also includes a Tracker that tracks at 1.79 per cent above the Bank of England base rate (currently 2.29 per cent) for the life of the loan and has a booking fee of only £99.  It is available to customers with at least 40 per cent equity in their homes looking to move home or just their mortgage.