UK: HSBC cuts interest rates for FTB mortgages

HSBC has cut interest rates on its larger loan-to-value (LTV) deals and introduced a new 95% LTV range, in an effort to attract more first-time buyers (FTBs).

While other lenders in the market such as Halifax attempt to appeal to FTBs by increasingly offering cashback mortgages, HSBC has opted to improve its rates, as well as remove several of its upfront mortgage fees.

The bank’s efforts to appeal to FTBs are likely to be on target, as RFi Group data shows that rising interest rates are one of the key areas of concern amongst FTBs when taking up a mortgage, as well as any other costs associated.

HSBC’s 90% LTV now offers a two-year, fee-free fix at 1.99% (a 0.2% rate cut), while its new mortgage range offers two-, three- or five-year fixes at 3.49% at 95% LTV.

The removal of its £99 booking fee and its standard valuation fee will apply to all HSBC mortgage customers, and the maximum lending term has been extended to 35 years for customers wanting to spread out and reduce monthly repayments over a longer period.

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