HSBC launches 90% LTVs with £1bn funding

HSBC is launching a range of mortgage products with loan-to-value maximums of up to 90% and rates of 4.99%, backed with £1bn of funding.

This is part of HSBC’s £15bn fund it has allocated for new mortgage lending in 2009, twice what the bank lent in 2007.

The new mortgages will be available to HSBC Plus account and Premier customers. HSBC current account customers and those not currently with HSBC are welcome to open a Plus account to take advantage of the offers.

Joe Garner, group general manager of HSBC’s personal financial services says: “Although house prices have fallen, and continue to fall, they won’t fall forever.  At HSBC we are standing by our customers through thick and thin and these changes mean we can continue to give customers the best possible deal on their mortgage.  This is a one billion pound commitment and it says we appreciate our customers’ loyalty.”

Remortgage customers will be unable to apply for the range of 90% LTVs, but HSBC says many borrowers will find their existing lender’s standard variable rate to be their cheapest option when they roll off their fixed, tracker or discount deals. In addition these new mortgages will only be available from HSBC’s branch network and customers will be taken through the implications of borrowing in detail.