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

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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

Building societies winning the mortgage rate war

Competition is fierce in the mortgage market, and borrowers may assume that the rates from banks will be significantly lower than those elsewhere. However, things aren’t as they seem, as building societies are the winners of the mortgage rate war.

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.