HSBC have announced an allocation of ?1 billion for mortgage lending to homebuyers with only a 10 per cent deposit, the Daily Mail has reported. However, this applies only to those with an HSBC Plus account or who can qualify to be a Premier customer.
This is all part of the ?15 billion HSBC has set aside for new mortgage lending this year. It should be good news for first-time buyers who may feel their mortgage options are lacking ever since the credit crunch came.
The types of deals HSBC are offering are said to be ?the most competitive seen for high loan-to-value borrowers seen since the banking collapse six months ago?.
The first deal is a two-year fixed rate mortgage of 4.99 per cent with a ?1,499 arrangement fee to homebuyers borrowing up to 90 per cent of their property?s value. For those that want a cheaper arrangement fee, there?s the higher rate option of paying 5.49 per cent fixed rate over two years, with the arrangement fee being ?199. Finally, there?s the lifetime tracker with a current rate of 4.59 per cent, which comes with a ?999 arrangement fee.
There has been a drastic decrease in first-time buyers taking out a mortgage, as figures for January have shown only 8,900 did so, the lowest number to date and a far cry from the 54,100 in June 2002. With renewed interest and rising inquiries in the property market, it?s seen as a good time for the allocation of more money.
Joe Garner, group general manager of HSBC?s personal financial services, said it?s about giving back to their customers: ?Although house prices have fallen, and continue to fall, they won’t fall forever. This is a one billion pound commitment and it says we appreciate our customers? loyalty.?
