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HSBC launches 90 per cent LTV deals and cuts rates on other tiers

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  • 12/01/2021
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HSBC launches 90 per cent LTV deals and cuts rates on other tiers
HSBC has revealed the interest rates for its re-entry to the 90 per cent loan to value (LTV) market and cut rates on 17 other mortgages.

 

Rates for the new deals have been increased from the previous product transfer rates and start at 3.69 per cent for the two-year fix with £999 fee.

The two-year fee-free version is at 3.99 per cent, while the five-year options are at 3.84 per cent and 4.14 per cent respectively, with a premier version with £1,499 fee at 3.81 per cent.

There is also a two-year tracker with a £999 fee for 3.69 per cent plus the Bank of England base rate, currently at 0.1 per cent.

The lender was one of the last high street names to maintain its range to that level during the pandemic and finally withdrew to protect service levels in September, but confirmed its relaunch last week, following several other lenders back into the market.

Speaking at The Mortgage and Protection Event in November, HSBC UK head of south region and large loans Amanda Fenner confirmed only the volume of demand was keeping HSBC out of the 90 per cent LTV space.

 

Rate cuts for 17 products

Meanwhile, the lender has also made reductions of up to 0.2 per cent across the rest of its range.

Examples include the two-year fix at 60 per cent LTV with no fee which has been cut by 0.15 per cent to 1.64 per cent, with the £999 fee equivalent reduced by 0.10 per cent to 1.24 per cent.

The five-year fixes with no fee 60 per cent, 70 per cent and 75 per cent LTV have all been reduced by 0.20 per cent 1.79 per cent, 1.99 per cent and 1.99 per cent respectively.

And the five-year fixes at 80 per cent have been reduced by 0.15 per cent to 2.29 per cent for the £999 fee version and 2.59 per cent with no fee.

HSBC UK head of buying a home Michelle Andrews (pictured) said: “Home-ownership dreams may have seemed even further away for many first-time buyers of late, but with more providers returning to 90 per cent LTV mortgages, they may be closer to becoming a reality, which is great news.

“Lower rates across other LTVs is also great news, and could well provide those looking to remortgage, switch rates or those on a standard variable rate with some important savings on their current monthly outlay.”

 

 

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