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First Time Buyer

HSBC launches 10% deposit deals

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
12/01/2021

HSBC has revealed the interest rates for its re-entry to the 90% loan to value (LTV) market and cut rates on 17 other mortgages.

Rates for the new deals have been increased from the previous product transfer rates and start at 3.69% for the two-year fix with £999 fee.

The two-year fee-free version is at 3.99%, while the five-year options are at 3.84% and 4.14% respectively, with a premier version with £1,499 fee at 3.81%.

There is also a two-year tracker with a £999 fee for 3.69% plus the Bank of England base rate, currently at 0.1%.

The lender was one of the last high street names to maintain its range to that level during the pandemic and finally withdrew to protect service levels in September, but confirmed its relaunch last week, following several other lenders back into the market.

Rate cuts for 17 products

Meanwhile, the lender has also made reductions of up to 0.2% across the rest of its range.

Examples include the two-year fix at 60% LTV with no fee which has been cut by 0.15% to 1.64%, with the £999 fee equivalent reduced by 0.10% to 1.24%.

The five-year fixes with no fee at 60%, 70% and 75% LTV have all been reduced by 0.20% to 1.79%, 1.99% and 1.99% respectively.

And the five-year fixes at 80% have been reduced by 0.15% to 2.29% for the £999 fee version and 2.59% with no fee.

HSBC UK head of buying a home Michelle Andrews, said: “Home-ownership dreams may have seemed even further away for many first-time buyers of late, but with more providers returning to 90% LTV mortgages, they may be closer to becoming a reality, which is great news.

“Lower rates across other LTVs is also great news, and could well provide those looking to remortgage, switch rates or those on a standard variable rate with some important savings on their current monthly outlay.”