HSBC cuts cost of FTB mortgages

House keysHSBC has cut interest rates on its larger LTV deals and removed a number of its mortgage fees, in a bid to appeal to more first-time buyers.

The bank has cut the interest rates on many of its 90 per cent LTV loans, and has also introduced a new 95 per cent LTV mortgage range.

At the same time it has removed the £99 booking fee from this range, as well as ditching its standard valuation fee. This latter change will apply to all its mortgage customers.

HSBC has also extended its maximum lending term to 35 years, reducing monthly repayments for those that opt for a longer term.

With its new mortgage range HSBC is offering two-, three- or five-year fixes at 3.49 per cent at 95 per cent LTV. There are no upfront fees on these mortgages.

At 90 per cent LTV, the bank is now offering at two-year fee-free fix at 1.99 per cent, a reduction of 0.2 per cent.

It’s three-year fix has been cut by a similar margin, and is now also priced at 1.99 per cent, although this has a £999 fee.

HSBC is also offering a five-year fix at 90 per cent LTV. This is priced at 2.59 per cent, without a fee, or at 2.39 per cent with a £999 fee.

HSBC’s head of retail banking Tracie Pearce says: “It’s difficult to overstate the importance of first-time buyers to the housing market, and of the housing market to the wider economy. That is why we are making a succession of changes to address the challenges first-time buyers face.”

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