HSBC unveils new 5 per cent mortgage deposit products
HSBC UK has revealed details of its new 5% deposit mortgage products, as a new Government scheme to boost the supply of low-deposit deals gets under way.
The new 95% loan-to-value (LTV) deals are now available from HSBC.
The product range includes mortgages fixed for two or five years, available to single or joint applicants, with the same rates whether taken out direct through advisers or through a broker.
They include a two-year fixed-rate deal at 3.99% with a £999 fee, or one for the same period without this fee for a higher rate of 4.29%.
Five-year fixed-rate deals are available at 4.29% with a £999 fee, and 4.49% without this fee.
HSBC said its maximum loan size available through brokers is £500,000. For direct customers it is currently £400,000, but it will be increasing this to £500,000 at a later date.
To qualify, the home must be the only property that mortgage applicants own and it will be their main residence. The property must not be a new build or part of a shared ownership or shared equity scheme.
Michelle Andrews, HSBC UK’s head of buying a home, said: “We have supported home buyers and the wider housing market throughout the pandemic and are excited to support the mortgage guarantee scheme.
“After such a turbulent year it is great that this scheme will make a real difference in enabling first-time buyers who didn’t think they would have a chance of getting a mortgage and home movers to get the keys to their new home.”
