HSBC gives mortgage boost to homebuyers

Tuesday, 29 September 2009 12:00

HSBC is making £500million available to help homebuyers with ten per cent deposits move up, or on to, the housing ladder.

The lender announced it was providing funds to more people who were borrowing up to 90 per cent of their property's value following high demand from this "vital" sector of the market.

It currently has a range of mortgages for buyers with loan-to-values (LTVs) of between 75 per cent and 90 per cent, including a two-year fixed-rate deal at 5.99 per cent with a £599 fee.

Borrowers with low deposits can also take advantage of a five-year fixed-rate deal at 6.49 per cent and a £599 fee and a two-year discount mortgage at 3.89 per cent with a £1,199 fee.

A lifetime tracker with a 4.59 per cent rate and a £999 fee is also available.

Martijn van der Heijden, head of mortgages at HSBC, said house prices had bottomed and many people who put off making purchases last year were starting to scour the market again.

He added: "We committed £15billion to mortgage lending in 2009 - double our 200 lending - and £1billion of this was made exclusively available to homebuyers with deposits of just ten per cent.

"Demand has been very strong and we have reached this target, so now we are committing another £500million to this vital segment of the market."

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