A large bank brings back 10% deposit mortgage deals – a boost for first-time buyers and other low-deposit borrowers.
HSBC UK announced that the two- and five-year fixed income operations with terms of up to 35 years will be available starting Tuesday January 12th.
The new mortgages will be available direct from HSBC UK and through its broker partners.
Customers can potentially borrow up to £ 400,000.
Further details on the mortgage rates on offer will be announced on January 12, the bank said.
Many lenders have withdrawn their low deposit mortgage deals over the past year due to uncertain home prices during the coronavirus pandemic and difficult access to real estate for physical valuations.
However, towards the end of 2020, there were signs of lenders turning again to first-time buyers and other low-deposit mortgage borrowers, including Yorkshire Building Society, Nationwide and TSB.
Michelle Andrews, Head of Home Buying at HSBC UK said: “I am delighted and proud to announce that we will be reintroducing mortgages with up to 90% LTV (loan-to-value).
“These mortgages build on our extensive support for brokers and mortgage customers throughout 2020 and will be widely available – for home purchases, first-time buyers, and new mortgages – for a maximum of 35 years.”
Ms. Andrews added, “The new lock will no doubt present challenges, but the experience of overcoming numerous difficulties during the original lock, such as making greater use of automated reviews, will be invaluable.
“We all strive for a return to normal, although for many it will feel like we won’t see it for a while. Hopefully, when we get back into the higher LTV range, that is a bit of a welcome normal.”