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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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.