New First Time Buyer Mortgage Range From The HSBC….

by Mark Johnston

New First Time Buyer Mortgage Range From The HSBC….

The mortgage price war has over the past few months resulted in lots of good deals for borrowers with plenty of equity or a large deposit. Now however it appears that things could be looking up for first time buyers as well!

HSBC has recently announced that it is to launch a range of mortgages aimed at first time buyers with a 10 per cent deposit which it pledges will be the lowest on the high street.

hsbcOn 2 September, this year,  the lender is to introduce a two year fixed rate charged at 3.59 per cent, a five year fix charged at 4.39 per cent and a lifetime tracker charged at 3.99 per cent.

The fix rate deals then revert to HSBC’s standard variable rate, which is currently 3.94 per cent.

All these particular deals are available up to 90 per cent loan to value (LTV) and come with a £999 fee for existing HSBC customers or a £1,499 fee for non-customers.

Although the deals are focused towards first time buyers, any home buyer requiring 90 per cent loan to value (LTV) can apply.

Although it is worth noting that these deals are only available direct from HSBC and are also only available until the beginning of November this year.

Adrian Anderson, from broker Anderson Harris, says “HSBC’s new range is set to include some market leading rates, so will be well worth considering.”

Rachel Springall, finance expert at Moneyfacts, a leading personal finance data provider, commented:  “First time buyers will be pleased to see a market leading rate still on offer if they have a 10 per cent deposit and enough money to cover mortgage fees.

Peter Dockar, HSBC head of mortgages, said: “We have consistently shown our commitment to helping first time buyers take their first step on the ladder and by promising the best rate on the high street we are taking away the hassle out of searching for a mortgage.”

However, while the rates the this new range do appear beat the usual big names such as Natwest, Woolwich and Santander and Halifax, borrowers could save money by going further afield and checking other deals on the internet.

The closest high street competitor to HSBC’s two year fix at 3.59 per cent, is Natwest which has a fee free rate of 4.49 per cent.

The HSBC product works out almost £800 cheaper than the Natwest product over the deal period for someone with a 25 year £150,000 mortgage, despite a £999 fee, or almost £300 cheaper with a £1,499 fee.

However, if borrowers were to look beyond the high street and search deals online or through a broker, consumers may find a better deal.

Such as one offered by Skipton Building Society who offer a rate of 3.99 per cent with no fee. This works out more than £200 cheaper compared with the deal for HSBC current account customer, or more than £700 cheaper for non-current account customers.
 

 

 



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