HSBC continues support for first time buyers

HSBC is continuing its support for first time buyers by offering new competitive rates for higher Loan to Value (LTV) customers.

The new rates launched today (27 June 2011) for customers with a 10% deposit include:

4.19% above base rate lifetime tracker (current pay rate 4.69%) (£599 fee)
4.99% two year fixed (£599 fee)
5.99% five year fixed (£599 fee)

New rates for customers with a 15% deposit include:

3.49% above base rate lifetime tracker (current pay rate 3.99%) (£199 fee)
3.99% two year fixed (£899 fee)

In each of the past three years the number of first time buyers in the UK has been under 200,000, less than half the 500,000 a year seen previously.

A recent HSBC survey of non-homeowners found that 78% of all non-home owners, who have never bought before, aspire to be homeowners. Furthermore, 85% of non homeowners aged 18-34 aspire to be homeowners.

The survey also revealed that only 19% of aspiring homeowners expect to purchase within the next five years. Almost half (45%) do not expect to be able to purchase a home ever.

Stuart Beattie, Head of Mortgages at HSBC, said: ‘Over 80% of young non-homeowners are aspiring to buy a home. HSBC is committed to helping their cause. The new mortgage rates we have made available today will help those with a relatively small deposit become homeowners.'