Direct-only lender HSBC has launched a range of 90 per cent LTV mortgages and says it will match or beat similar deals offered by other major high-street providers.
The offer ends on 3 November and the range aims to match or beat advertised deals offered by rival lenders Barclays, Woolwich, Halifax, Lloyds TSB, Nationwide, NatWest, Royal Bank of Scotland and Santander.
Products include a two-year fix comes in at 3.59 per cent, a five-year fix at 4.39 per cent, lifetime tracker at 3.99 per cent and are all available up to a maximum loan size of £400,000.
All of the products come with fees of £999 for HSBC current account customers and £1,499 for non-HSBC current account holders.
But it says that if a customer has found a better 90 per cent rate with a rival brand then, provided it is not a retention deal, it will actively match or beat it.
The lender’s results for the first half of 2013 revealed gross lending had fallen 16.4 per cent year-on-year, advancing £6.1bn to mortgage borrowers compared with £7.3bn in the same period a year earlier.
But figures published earlier this month by the Council of Mortgage Lenders for the top 20 biggest lenders in the UK in 2012 revealed HSBC entered the top five after finishing 2011 in sixth place. It increased gross lending from £13.2bn to £16.4bn in 2012 and its market share increased from 9.3 per cent to 11.5 per cent.
The lender’s head of mortgages Peter Dockar says: “We have shown our commitment to help first-time buyers and, by promising the best rate on the high street, we are taking away the hassle out of searching for a mortgage.”
At present, First Direct is offering the cheapest 90 per cent deal on the market, at 3.59 per cent, which is the same rate as HSBC’s. This is followed by the Post Office, at 3.99 per cent. Most of the other cheaper 90 per cent LTV deals are between 4 per cent and 5 per cent.