HSBC 

HSBC cuts 90% LTV mortgage rates

HSBC cuts 90% LTV mortgage rates

HSBC has cut interest rates on all 90 per cent loan-to-value (LTV) mortgage products and removed upfront fees.

Following a review of its mortgage interest rates, HSBC UK is making it possible for first-time buyers with a 10 per cent deposit to borrow below 2 per cent, with no upfront costs for two or three years.

The fee-free two-year fixed rate 90 per cent LTV was cut by 0.2 per cent to 1.99 per cent, the three-year fixed rate 90 per cent LTV with a £999 fee was also reduced by 0.2 per cent to 1.99 per cent and the two-year fixed rate 90 per cent LTV deal with a with £999 fee is cut by 0.1 per cent to 1.74 per cent.

The lender has also introduced a 95 per cent LTV mortgage proposition with two, three and five-year fixed rates priced from 3.49 per cent with no fee.

HSBC has also extended its maximum lending term to 35 years, helping home-buyers to lower the monthly cost by spreading the payments over a longer period, plus removed the standard valuation fee for all mortgage customers and removed the £99 non-refundable booking fee from the product range.

Tracie Pearce, head of retail banking for HSBC UK, said: “It is difficult to over-state the importance of first-time buyers to the housing market, and of the housing market to the wider economy.

“That is why we are making a succession of changes to address the challenges first-time buyers face, which will help keep the housing market moving.

“Improvements we have made to rates and accessibility make getting on the property ladder more affordable and simpler, as well as making small but important changes in the background to make the customer journey as frictionless as possible.

“This will go a long way to helping people satisfy their aspiration for home ownership."

David Hollingworth, associate director of communications at L&C Mortgages, said: "Demand from first-time buyers has held up strongly and mortgage lenders have sought to diversify their offering with many electing to add additional incentives such as fee-free and cashback options. 

"These changes from HSBC are all designed to enhance its first-time buyer offering and as is often the case with HSBC the rates are sharply priced.

"The three-year fix at 1.99 per cent is the keenest 90 per cent rate on the market and may offer an interesting alternative to the shorter two-year options. 

"The recent inclusion of a 95 per cent LTV range plugs what was previously a product gap for HSBC and they’re a welcome addition to that market sector."

emma.hughes@ft.com

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