HSBC outlines its Help To Buy mortgages


HSBC is to offer new homebuyers two fixed-rate mortgages up to 95% loan to value (LTV) from Monday 25 November as part of the government's Help to Buy (HTB) scheme.

The bank will launch a two-year deal at 4.79% and a five-year deal at 4.99%, both reverting to the lender's standard variable rate (currently 3.94%) with a booking fee of £99.

The deals are cheaper than those Help to Buy mortgages already announced by RBS, NatWest and Halifax.   

RBS and NatWest are offering a two-year fixed-rate deal mortgage at an interest rate of 4.99% and a five-year fix at 5.49%. Neither come with fees.

Halifax has announced two two-year fixes. One has a rate of 5.19% and comes with a fee of £995, and the other has a rate of 5.59% but is fee free.

Yorkshire Building Society is also set to launch a competitive 95% LTV that is not part of the HTB scheme. It will soon launch a two-year fix at 4.89%, reverting to 4.99% after the fixed period ends, that has no product fee and comes with £500 cashback on completion.

The banks are keen to demonstrate they will be more responsible with the return of low deposit mortgages and HSBC said its mortgage borrowers will be required to put down a minimum deposit of £10,000 and be assessed to ensure they can afford repayments at significantly higher interest rates compared to those available now.

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Customers applying for 90 to 95% LTV deals will be asked "to acknowledge a monthly repayment illustration at a responsible long-term rate". HSBC said: "This will provide an indication of their increased monthly mortgage payment when, as expected, interest rates rise."

Brendan Cook, head of retail banking and wealth management for HSBC UK added: "We want to support our customers, whether they are buying their first home or moving up the housing ladder. In order to protect them, we want to ensure they can afford their repayments when interest rates rise."

HSBC's HTB mortgages will be available from the bank's branches but not through mortgage brokers and it said it will look at offering the loans to remortgage customers "at a later date".

A quick guide to Help to Buy

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