HSBC launches new 90% LTV deals

8 September 2010 | By Natalie Thomas

HSBC is launching two new 90% LTV deals on Monday, both aimed at first-time buyers.

Its new tracker deal tracks at 3.69% above the Bank of England base rate currently 4.19%.

It is also launching a two-year fixed rate deal at 5.09%.

Both deals have a fee of £99.

Martijn van der Heijden, head of mortgages at HSBC, says: “HSBC is keen to be there for new and existing customers, whether it’s for people looking to take their first step on the housing ladder or for people looking to improve on their current deal.

“We think we can reduce the cost of borrowing for most people and we think that’s what people are after in these difficult times.”

In addition to the 90% LTV mortgage, HSBC is further extending its 2.19% lifetime tracker, with a fee of £99, until October 31 2010.

It says there has been a huge demand for the deal since its launch in August and it continues to approve four out of five mortgage applications.

Readers' comments (14)

Edward | 8 Sep 2010 4:32 pm
This blows C&G's 90% LTV 2 year fixed rate at 7.09% out of the water!
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Anonymous | 8 Sep 2010 4:43 pm
Nice rate.... if you can get it! All of us in the industry know what HSBC's underwriting is like and this is just another rate that looks fantastic but realisitically who will get it?? Their service standards are terrible and I don't know of any buyer, or vendor for that matter, willing to wait 6+ weeks for a survey in a market where prices are declining. This rate might look pretty on HSBC's website and help them to get customers through the door, but I'll be using this to my advantage when speaking to clients to reiterate that they'll be waiting weeks and weeks and weeks and weeks for their mortgage offer.
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Maurice Edgington | 8 Sep 2010 4:51 pm
If its on new build please someone at HSBC let me know by e-mail urgently mpr@tricon.ltd.uk
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John Baker | 8 Sep 2010 4:53 pm
What a fantastic deal.....and I'm sure that both of the customers who get approved for it will think so as well!!
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colin | 8 Sep 2010 5:39 pm
LOL, more great rates, but to get it you have to suffer the wait and have the ability to deal with a call centre in Bombay that is hard to understand and worse doesn t understand the process very well. 4/5 applications...i d be surprised by that........Skipton were in danger of becoming the intermediary HSBC, trying to decline cases for the most obscure reason although I did manage to fight the clients corner and got my two approved!!!!!!!......but i m sure others have not been so fortunate
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Anonymous | 8 Sep 2010 5:41 pm
Valid points re service and low approvals but unfortunately the average man in the street will see a headline rate we cannot compete with.
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HDC | 8 Sep 2010 7:20 pm
What a great rate despite the negative comments on service.

If one lender can provide excellent rates at such high LTV then others should be able to follow.

As previously mentioned it makes the C & G 90% LTV offering laughable especially when it's part owned by the government that should be encouraging better rates via all the lenders they have a stake in.

As a broker it is most annoying HSBC do not operate with us.
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The Devil's Advocate | 9 Sep 2010 7:23 am
Hmmm, weeks and weeks for a decision. I have a 9 mortgages awaiting decision at the moment from my branch of which, only 2 have gone past 48 hours for a decision. The 2 are both aware that they need to bring in further documentation (Tax returns, nothing complicated) so hardly true.
Also, our mortgage managers are based in our branches - not Bombay, our Direct team are mainly based in Hemel Hempstead - not Bombay so another lie from a desperate intermediary.
Most valuations are carried out within 72 hours unless a full structural survey is required which can take a little longer to ensure it is done correctly.
Our overseas processing centres, including India, Philippines, Malaysia, US, Egypt and Malta allow us to process mortgages 24 hours a day so can only be a bonus for customer experience.
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Anonymous | 9 Sep 2010 8:40 am
3.69% over base rate should not be tolerated when base rate will rise to 5% at some point. I've seen cheaper heavy subprime deals.
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colin | 9 Sep 2010 10:11 am
8.40am......well its somewhat better than 5.49% over Base as C&G currently charge......that could easily be 10.49% when the base rate gets back to 5%!!!!!!!!!
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