HSBC relaunches low deposit mortgage lending
It will be making two and five-year fixed rate options available for purchase and remortgage, with terms available up to a maximum of 35 years.
Rates will be released on Tuesday 12 January when the product range goes live, with maximum loan amounts of £400,000.
The lender was one of the last high street names to maintain its low deposit mortgage range during the pandemic but it was forced to pull its 90% LTV deals in September after seeing a surge in demand.
With Accord, Barclays, Halifax, NatWest, Aldermore and Coventry Building Society re-entering over the last six weeks there is now far more capacity in the market.
‘Available across the board’
Announcing the re-launch, HSBC UK head of buying a home Michelle Andrews said she was pleased to be re-introducing mortgages at up to 90% LTV.
“These mortgages build on our significant support for brokers and mortgage customers throughout 2020 and will be available across the board – for home purchases, first-time buyers and to those remortgaging – all up to a maximum of 35 years,” she said.
“The new lockdown will undoubtedly present challenges, but the experience of overcoming numerous difficulties during the original lockdown, for example making more use of automated valuations, will be invaluable.
“We are all seeking a return to normal, although for many it will feel like we may not see that for a while. With us returning to the higher LTV space, hopefully that is a little bit of welcome normality.”
Changes at Barclays
Barclays is launching two 90% LTV mortgages to its range from tomorrow and is amending its remortgage cashback facilities.
The two-year 90% LTV fixes will be available for purchasing customers only, with the £999 fee-paying product at a rate of 3.55% and the fee-free option at 3.75%.
The 90% LTV mortgages will be to next-time buyers and continue to be eligible on new-build homes. The mortgages will be available for loan amounts between £5,000 to £500,000.
These products will sit alongside Barclays’ existing five-year fixes at 90% LTV which were launched last month as part of its return to the low-deposit market.