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HSBC pledges £350m to FTB lending

HSBC has committed a further £350m to first-time buyer lending and launched a raft of competitive high LTV deals.

The bank says it will reserve a minimum of £250m in funding for those with a 15% or 10% deposit by the end of this year.

It has also launched a number of 85% and 90% LTV mortgage products, all of which are fee free.

At 90% LTV, HSBC is introducing a lifetime tracker at 4.09% above base rate, a two-year fix at 4.49% and a five-year fix at 4.89%.

And at 85% LTV, it is launching a lifetime tracker at 3.49% above base rate, a two-year fix at 4.29% and a five-year fix at 4.69%.

HSBC says it provided a mortgage to one in eight first-time buyers in 2011 and the amount it has lent to those with a 10-15% deposit so far this year is already double what it lent in 2010.

Peter Dockar, head of mortgages at HSBC, says: “In 2011 we have continued to offer very competitive rates and great advice to those with a relatively small deposit which has helped us to increase the amount we have lent to first-time buyers.

“Today’s announcement of fee free rates and a pledge to make a further £250m available to first-time buyers in 2011 shows HSBC’s commitment to continuing to help people get on the housing ladder.”

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  • AA 16th October 2011 at 6:43 pm

    If only HSBC worked with brokers tp help the First Time Buyers market. At a time where applications are very tough to complete, sourcing appicants has been more important than ever, hence it seems wise to offer whole of market advice as oppose to single product advice. HSBC and the likes of Tesco (whom are coming to the market) need to put customers first asap.

  • Ken 15th October 2011 at 11:57 am

    I agree with the anonymous message, having worked prior to becoming self employed with Hsbc as a financial advisor they do try to get good mortgage products out there and will remain a thorn in brokers sides, however given that process fees are not going to feed your families the protection advice is simply the way we can get the business back. You cannot compare the critical illness benefits that they give to the open Market this is the achilies heel for HSBC and one we all need to educate our customers with.

  • Tom Cleary 14th October 2011 at 1:43 pm

    HSBC offer some fantastically competitive mortgage rates. Which is good, because unsuspecting FTB’s will need to save as much as they can to afford the hideously overpriced and incredibly limited insurance that they will be pushed to take out. Critical Illness cover with an amazing total of six definitons!? Marvellous “advice”…

  • bobby 14th October 2011 at 1:35 pm

    £ 250m equates to 1666 mortgages at 3 150k average. 1666 mortgages per annum for the whole of the UK. WOW. Lenders DO NOT want business above 75% ltv and will eventually kill off the mortgage market stone dead and when they do decide to lend at 90% or 95% it will be too late as people will be used to renting and the buying culture will have changed forever.

  • Mark Stroud 14th October 2011 at 12:32 pm

    Peter, so you have offered great advice? I assume this took into account other deals from other lenders?
    I think you had best check your SCDD again.

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