HSBC pledges help to first-time buyers - Mortgages - News - Moneyfacts


HSBC pledges help to first-time buyers

HSBC pledges help to first-time buyers

Category: Mortgages

Updated: 03/09/2013
First Published: 03/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

HSBC has promised to offer "unbeatable" high-street mortgage rates to first-time buyers.

The announcement came as the bank launched its new range of 90% loan-to-value products.

On rate alone, its new two-year fixed mortgage, at 3.59%, is the lowest in its sector.

The new five-year fixed rate, meanwhile, offers a market-leading rate of 4.39%.

Borrowers also have the option of a lifetime tracker mortgage at 3.99%.

Fees for all products are £999 for HSBC current account customers or £1,499 for non-customers.

Applicants who open a HSBC bank account at the same time as applying for the mortgage will be charged a £999 fee.

How do HSBC's products compare?

At 3.59%, HSBC's two-year fixed mortgage is the lowest available rate, but borrowers could also consider Skipton Building Society's two-year product at 3.99% as this product charges no fees.

Depending on how much you plan to borrow and the length of the deal, some borrowers may be better off choosing a mortgage with low arrangement fees and a higher interest rate, while in some instances, it would work out cheaper taking out a product with a lower interest rate, but higher arrangement fee, usually for a higher mortgage advance.

This means that although HSBC's product offers a lower rate, borrowers looking for a smaller mortgage advance would pay less over the term of the mortgage by taking out Skipton BS's product as it charges no fees.

In terms of five-year fixed rate products, borrowers could also consider Nottingham Building Society's deal at 4.39%.

Although Nottingham's product offers the same rate as HSBC's, it does come with lower fees. Borrowers would be charged a £100 booking fee and a £199 arrangement fee – significantly lower than HSBC's £999 fee.

What next?

Remember, choosing a mortgage is a complicated matter, so to make sure you find the right mortgage for your individual circumstances it's always a good idea to speak to an independent financial adviser.

Compare two year fixed rate mortgages

Compare five year fixed rate mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

The time is now for remortgaging

Mortgage borrowers have been urged to review their existing deals after it was revealed that remortgage opportunities continue to flourish in the post-Brexit vote world.

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.