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HSBC cuts rates up to 95 per cent LTV; The Nottingham and Vida add high LTV deals

  • 06/05/2021
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HSBC cuts rates up to 95 per cent LTV; The Nottingham and Vida add high LTV deals
HSBC has reduced rates on its mortgages up to 30 basis points (bps) across different loan to value (LTV) bands.


This includes its two-year fixed mortgage at 95 per cent LTV with a £999 fee. This has been cut from 3.99 to 3.74 per cent and the fee-free equivalent has been reduced from 4.29 to 3.99 per cent. 

The 90 per cent LTV two-year fixed with a £999 is now priced at 2.99 per cent after a 10 bps reduction. 

Two and five-year fixed mortgages at 80 per cent LTV have been reduced by 0.10 per cent. 

A five-year fixed product at 75 per cent LTV with a £999 has been cut to 1.54 per cent. Meanwhile, at 60 per cent LTV, the five-year fix with a £999 fee has been reduced to 1.24 per cent while the fee-free option has been cut to 1.54 per cent.  

The bank continued on its drive to roll out to the whole broker market with the addition of more than 100 firms in the last eight weeks. 

HSBC also said it completed more mortgages in March than in any previous month it had offered home loans, including 3,000 mortgages for first-time buyers. 

Michelle Andrews, HSBC UK’s head of Buying A Home, said: “It has been an incredibly busy time for us, and we have seen all of this with lockdown measures still in place. I am extremely proud of my teams who are delivering customer-focused service on a daily basis. 

“This gives me great hope for HSBC UK providing a greater share of mortgages, and hope and excitement for the mortgage and housing markets post-lockdown.” 


The Nottingham returns to 95 per cent LTV lending 

The Nottingham has added a 95 per cent LTV product to its range as part of its re-entry into low deposit lending. 

The mutual withdrew from the mortgage market completely in September before slowly returning earlier this year, with its most recent launch being 90 per cent LTV mortgages. 

The 95 per cent LTV is a five-year fix with a rate of 4.1 per cent. It offers a free valuation and free legals for remortgages. 

Nikki Warren-Dean, The Nottingham’s head of intermediary salessaid: “A year on from last lending at 95 per cent LTV we are pleased to have this product available, and hope it appeals to first-time buyers with a lower deposit looking to get on the property ladder. 

Warren-Dean also warned on the product’s availability and cautioned it may pulled at short notice.  

She added: “We’re expecting this product to be popular so our message to brokers is to submit well-packaged cases to us as soon as possible. 

“No matter who the lender is, product ranges can change at relatively short notice, particularly in the current climate, so we would encourage brokers who have an accepted decision in principle to submit a full application at their earliest convenience.” 


Vida launches limited edition mortgages 

Vida has released limited edition residential mortgages at 85 per cent LTV. 

The mortgages are eligible within its Vida 1 range for borrowers with minor credit impairments. 

There’s a two-year fixed set to 4.09 per cent and a five-year fixed priced at 4.24 per cent. The products are available for purchase and remortgage with a maximum loan size of £500,000. 

The lender is also launching fee saver products to the Vida 1 range up to 70 per cent LTV, including a two-year fixed with a rate of 3.59 per cent and a five-year fixed at 3.74 per cent. 

These mortgages are fee-free and have a £49 assessment fee. The maximum loan sized offered is £350,000 and the lender will carry out a free valuation on properties worth up to £500,000. 

Richard Tugwell, director of mortgage distribution at Vida, said: “Although there are reasons for optimism, the Covid-19 pandemic has had a huge impact on the financial circumstances of millions of people across the UK.  

The long-term implications of the crisis mean there is a new generation of borrowers with impaired access to credit who will need the support of specialist lenders to help them despite their complex situations.  

He added: “Our new product launches today are another step in achieving this, and we’re confident that these offerings are a great solution to help borrowers who have smaller deposits or who find that the costs associated with home buying restrict their home ownership plans.” 

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