HSBC gives first time buyers a boost with £350m pledge

Published: 14/10/2011

HSBC has announced its plans to lend a further £350m by the end of the year to would-be and existing homeowners with either a 10 or 15 per cent deposit.

The high street bank went on to say £250m of that total amount has been earmarked specifically for first time buyers which should be music to this struggling market’s ears.

The move is supported by the launch of several new, fee-free 85 and 90 per cent LTV mortgage deals starting at 3.99 per cent.

The 90 per cent LTV deals include a lifetime tracker at 4.09 per cent above base rate and a two or five year fixed rate at 4.49 and 4.89 per cent respectively, while the up to 85 per cent LTV range features a lifetime tracker at 3.49 per cent above base rate, and two-year and five-year fixed rates at 4.29 and 4.69 per cent.

Head of Mortgages at HSBC, Peter Dockar, is proud of the bank’s new range:

“The announcement of fee-free rates and a pledge to make a further £250 available to first time buyers in 2011 shows HSBC’s commitment to continuing to help people get on the housing ladder.”¹

The news comes after forewarning about the looming Stamp Duty reprieve deadline. From 25 March 2012, first time buyers will have to pay Stamp Duty on properties valued at over £125,000. In order to qualify for the reprieve, the purchase must be complete on or before 24 March 2012, meaning instructions must be in before Christmas.

¹Mortgage Solutions (Oct 2011)

Content correct at time of publication