HSBC pledges £350m at high LTVs in run-up to Xmas
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HSBC has committed to lend £350m to borrowers at high LTVs in the months leading up to Christmas.
The lender claims it has provided one in eight first-time buyers with a mortgage in 2011 so far.
Last week it announced it is making a further £350m available to borrowers with equity or a deposit of 15% or less by the end of the year, with £250m of this reserved for first-time buyers.
It also launched a range of high LTV mortgages and is offering all 85% and 90% LTV rates on a free-fee basis.
The range includes a 90% LTV lifetime tracker mortgage at 4.09% above the Bank of England base rate, as well as a 4.49% two-year fixed rate and a 4.89% five-year fix.
For customers with a 15% deposit it is offering a lifetime tracker at 3.49% above the base rate and a 4.29% two-year fixed rate.
It is also offering a 4.69% five-year fixed rate at 85% LTV.
Peter Dockar, head of mortgages at HSBC, says: “In 2011 we have continued to offer competitive rates to those with a relatively small deposit which has helped us increase the amount we have lent to first-time buyers.”
Mike Fitzgerald, sales and marketing director at Emba Group, says that although brokers do not have access to the deals it is good news for first-time buyers.
He says: “Hopefully the deals will push other lenders to offer similar rates at high LTVs.
“The last time that HSBC launched first-time buyer products it shook the market up a bit, so hopefully these products will do the same.”
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