HSBC launches new home loans for first-time buyers

HSBC launches new home loans for first-time buyers

HSBC is launching a range of home loans with first-time buyers in mind.

The new mortgage offering includes a two-year fixed-rate with a maximum 90% loan-to-value ratio, at 4.99% and with a fee of £1,499.

Also likely to be of interest to house purchasers with a 10% deposit is the lender’s two-year fixed-rate loan at 5.49%, with a smaller fee of £199.

In addition, a lifetime tracker is available at 4.09% above base rate (current rate of 4.59%) and with a £999 fee but no exit penalty, giving borrowers the freedom to switch to another deal if the base rate rises.

However, only HSBC Plus or Premier current account customers will be considered for the loans, although potential borrowers with neither account can open one and take advantage of the offers.

The bank has already pledged £15 billion in new mortgage lending for 2009 and says it has allocated £1 billion to fund loans that don’t demand high deposits.

HSBC’s general manager of personal financial services, Joe Garner, comments: “Although house prices have fallen, and continue to fall, they won’t fall forever. At HSBC we are standing by our customers through thick and thin and these changes mean we can continue to give customers the best possible deal on their mortgage.”

The claims have already been upheld by independent mortgage adviser mform.co.uk, which recently named HSBC most consistently competitive mortgage provider for 2008.

All the new loans are available from 14th April.

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