Good news for first-time buyers as 10% deposits make a return

HSBC UK is re-introducing its 90% Loan To Value mortgages, with 10% deposits, from next week – a possible lifeline for first time buyers scrabbling to save a deposit.

Many lenders withdrew low-deposit mortgage deals last year, as worries over the housing market’s response to the Coronavirus led to lenders becoming more cautious.

The Yorkshire Building Society and TSB have made tentative moves back towards low-deposit mortgages, but HSBC is seen as a symbolic ‘big player’ making such a move.

The bank has confirmed that it will offer a range of two and five-year fixed rate options up to 35 year terms. Mortgage rates will be announced on January 12.

Michelle Andrews, HSBC UK’s head of buying a home, says:

“These mortgages build on our significant support for brokers and mortgage customers throughout 2020 and will be available across the board – for home purchases, first-time buyers and to those remortgaging – all up to a maximum of 35 years.

“The new lockdown will undoubtedly present challenges, but the experience of overcoming numerous difficulties during the original lockdown, for example making more use of automated valuations, will be invaluable. 

“We are all seeking a return to normal, although for many it will feel like we may not see that for a while. With us returning to the higher LTV space, hopefully that is a little bit of welcome normality.”

Kindly shared by Estate Agent Today

Main article photo courtesy of Pixabay