First time buyers offered 'rare 90% mortgage'First time buyers are being offered the opportunity to secure a mortgage for new homes with just a ten per cent deposit.
HSBC has launched a new lifetime tracker and fixed rate mortgage range designed specifically for first time buyers in need of higher loan to value ratios.
Mortgages offering a loan equivalent to 90 per cent of the value of a home have all-but disappeared from the lending market following the subprime crisis and subsequent credit crunch, which makes this offer even more attractive.
However, there are incentives for finding a 15 per cent deposit, because HSBC is then able to offer lower rates.
In the ten per cent deposit bracket, customers can choose between a 4.19 per cent base rate lifetime tracker, a 4.99 per cent two-year fixed rate or a 5.99 per cent five-year fixed mortgage.
With a 15 per cent deposit, customers can opt for either a 3.49 per cent above base rate tracker, or a 3.99 per cent two-year fixed rate mortgage.
Despite these new additions to the market, first time buyers can still expect to wait a while until the lending market improves markedly.
Your Mortgage Decisions director Dominik Lipnicki explained that there is little incentive to find a new mortgage deal at the moment, because a Bank of England rate rise appears imminent.