HSBC has cut rates on a range of its mortgages for first-time buyers or borrowers with just a ten per cent deposit at the start of 2013.

The new rates launched today (January 3rd 2013) include a 4.19 per cent deal for 90 per cent loan-to-value (LTV) borrowers on its two-year fixed rate mortgage and a rate of 4.69 per cent on 90 per cent LTV borrowers on its five-year fixed rate mortgage.

It has a tracker deal also available for borrowers with a ten per cent deposit at 4.19 per cent plus base rate (currently 0.50 per cent).

All 90 per cent LTV mortgage deals are fee-free for existing HSBC current account customers. Otherwise they come with a £599 booking fee and a valuation fee payable for non-current account holders.

The bank reminds us that its two-year fixed rate mortgage deal for 60 per cent LTV borrowers is still available at a rate of just 1.99 per cent, though the fee is high at £1,999 or £1,499 for existing HSBC customers. Its three-year fixed rate deal for borrowers with a 40 per cent deposit is available at 2.79 per cent with a £999 fee.

Peter Dockar, HSBC Head of Mortgages, said: “We worked hard last year to help UK borrowers with the aspiration to own their own home and we will continue to offer competitive rates to both first time buyers and existing homeowners.”

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “HSBC's new deals aimed at first-time buyers provide potential borrowers with competitive rates coupled with a reasonable fee at a high loan-to-value percentage.

“The two-year fixed deal at 4.19% is amongst the top deals in that sector and the five-year fixed deal at 4.69% is the best rate with no fee.

“These deals are also very competitive for new customers where a reasonable £599 fee applies.”