HSBC earmarks extra £350m for mortgages
HSBC has committed to lending a further £350 million to borrowers with a loan-to-value (LTV) ratio of at least 85 per cent.
The bank also revealed that £250 million of that total will be lent to first-time buyers between now and the end of the year, as well as unveiling a whole new range of deals for high LTV mortgages with no fees attached.
For customers with a ten per cent deposit (90 per cent LTV), the two-year fixed rate is now 4.49 per cent, with the five-year equivalent at 4.89 per cent.
Borrowers with a 15 per cent deposit can get a two-year fixed rate deal at 4.29 per cent and 4.69 per cent for five years.
Peter Dockar, head of mortgages at HSBC, said: "In 2011 we have continued to offer very competitive rates and great advice to those with a relatively small deposit which has helped us to increase the amount we have lent to first time buyers.
"Today's announcement of fee free rates and a pledge to make a further £250m available to FTBs in 2011 shows HSBC's commitment to continuing to help people get on the housing ladder.'
Analysts believe the number of opportunities for people looking for a high LTV mortgage have increased recently.
"The market has definitely improved with more lenders offering innovative products at high loan-to-values," Ray Boulger of mortgage broker John Charcol told the Financial Times.
Use the Myfinances.co.uk comparison tables to find the best deal on a new mortgage
- Tags:
- hsbc
- mortgage
- product news
,
,