A 90 per cent loan-to-value (LTV) mortgage has been launched by HSBC with a favourable rate of interest.
The offer is the bank's first ever sub-four per cent interest rate for mortgage borrowers with a ten per cent deposit. It means that for the two-year discount period house buyers will be paying just 3.84 per cent.
In addition to the favourable interest rate, there is no fee to pay on the financial product. This also applies to HSBC's other two-year and five-year fixed rates at 85 per cent and 90 per cent LTV.
Peter Dockar, head of mortgages at the bank, commented: “We are committed to supporting first time buyers and last month we pledged to make a further £350 million available to borrowers with equity or a deposit of ten to 15 per cent by the end of the year.
“We recognise that first time buyers need help so as well as great rates with no fee options we offer our customers a free mortgage advice service in branch to help them get the right deal for them.”
Meanwhile, customers with a 40 per cent deposit can enjoy a current pay rate of 2.39 per cent on a lifetime tracker with a £999 booking fee or a 3.28 per cent five-year-fixed deal, with a £1,999 booking fee.
