HSBC launches 90% LTV at 3.84%
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HSBC has launched a 90% LTV two-year discount deal at 3.84%, with no fee.
It has also launched a 60% LTV 2.39% lifetime tracker at 2.89% with a £999 booking fee and a 3.28% five-year-fixed with a £1,999 booking fee.
Aaron Strutt, head of communications at Trinity Financial Group, says the new rate might be low but may not offer the security many first-time buyers are seeking.
He says: “There is always the threat that lenders can increase their SVRs and with so many first-time buyers looking for the security of a fixed rate, they might not want to trust a bank to keep their monthly repayments low.”
Peter Dockar, head of mortgages at HSBC, says it is committed to supporting first-time buyers and claims the bank offers its customers advice in branch.
He says: “We recognise that first-time buyers need help so as well as great rates with no fee options we offer our customers a free mortgage advice service in branch to help them get the right deal for them.”
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Readers' comments (4)
Tim | 24 Nov 2011 9:10 am
First time buyers are the prey that that everyone likes to sell to, including HSBC. We all know their insurance products are overpriced and not particularly good.
This deal is just very tempting BAIT. Beware all who step inside the HSBC sales machine in the hope of receiving "Advice". How else are these guys gonna make any money at that rate?
Peter Docker, can you honestly tell us that "a free mortgage advice service in branch" is nothing but a targetted sales process?
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Anonymous | 24 Nov 2011 9:14 am
A nice headline grabber. It's only any good if pepople actually get approved for it. Still it's a shot accross thebow for all the so called big boys to start lending at 90% at easonable rates.
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AA | 24 Nov 2011 9:58 am
This Peter Dockar must have a hatred towards brokers and intermediaries. Claiming 'the bank offers its customers advice in branch' now and several times before. Stamp it on your forehead if you want. It comes accross he has a chip on his shoulder.
I personally think its good, the more lenders at 90%LTV, the better. It increases competition and more importantly it gets the housing market moving.
On top of that, not everyone will be accepted at 90% with HSBC, thats when brokers get involved.
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Dan McGeehan | 24 Nov 2011 10:31 am
Dear Peter I will now quote from your intial disclosure document which should be given to all customers. "You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed. If that is advice then I am Santa Claus!
It is undoubtedly a good rate and hopefully it will encourage competition from other lenders which can only be good for customers. By all means shout about the rate but do not mislead customers about what they will receive when they visit a bank.
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