Ten per cent mortgages are back
Boost for first-time buyers as HSBC UK is set to re-introduce deals, writes Vicky Shaw of PA
A major bank will re-introduce 10% deposit mortgage deals as part of its mortgage range, in a boost for first-time buyers and other low-deposit borrowers.
HSBC UK said that the two and five-year fixed-rate deals, with mortgage terms of up to 35 years, will be available from Tuesday January 12.
The new mortgages will be available direct from HSBC UK and through its broker partners. Customers may be able to borrow up to £400,000.
Further details about the mortgage rates being offered will be disclosed on January 12, the bank said.
Many lenders withdrew their low-deposit mortgage deals last year, amid uncertainty over house prices and difficulties in accessing properties to make physical valuations.
But towards the end of 2020 there were some signs of lenders starting to reach out to first-time buyers and other low-deposit mortgage borrowers once more, with Yorkshire Building Society, Nationwide and TSB among those making announcements.
Michelle Andrews, HSBC UK’s head of buying a home, said: “I am pleased and proud to announce that we will be reintroducing mortgages at up to 90% LTV (loan-to-value).
“These mortgages build on our significant support for brokers and mortgage customers throughout 2020 and will be available across the board – for home purchases, first-time buyers and to those re-mortgaging – all up to a maximum of 35 years.”
Ms Andrews added: “The new lockdown will undoubtedly present challenges, but the experience of overcoming numerous difficulties during the original lockdown, for example making more use of automated valuations, will be invaluable.
“We are all seeking a return to normal, although for many it will feel like we may not see that for a while. With us returning to the higher LTV space, hopefully that is a little bit of welcome normality.”