HSBC targets first-time buyers with fee-free mortgage with 90% LTV

First-time buyers are being targeted with a new range of mortgages from HSBC, which is making £350m of lending available to borrowers with small deposits.

The bank has launched a range of fee-free mortgages with a maximum loan-to-value (LTV) of 90%, including a market-leading lifetime tracker. The bank is reserving £250m of its lending for first-time buyers until the end of the year.

The mortgages include a two-year fixed-rate loan at 4.49%, a five-year fix at 4.89%, and the lifetime tracker, which tracks at 4.09% above bank base rate. For those with a 15% deposit there is a two-year fix at 4.29%, a five-year fix at 4.69% and a lifetime tracker at 3.49% above base.

For borrowers with a 10% deposit there are deals with lower rates out there, but all come with fees. Chelsea building society has a 4.09% rate fixed for two years with a £1,495 fee, while its parent company, Yorkshire building society, has a 4.19% loan over two years with a £995 fee. Both are available only through branches.

http://www.guardian.co.uk/money/2011/oct/14/hsbc-first-time-buyers-mortgage