HSBC announces a first time buyer mortgage price promise - but is it as good as it sounds?
HSBC has announced a price promise on its first time buyer mortgage deals.
For first time buyers looking for a 90% LTV deal, HSBC has launched a mortgage at 3.59%. The fee is either £999 or £1,499 depending on whether or not you have a current account with the lender.
Should another lender launch a cheaper rate first time buyer mortgage at 90% LTV, then HSBC says it will match or better the offer.
This is a bold statement, however a closer look reveals a flaw in HSBC's price promise.
Only 80% of lenders are included in the promise. HSBC pledges to match or beat deals from Barclays, Royal Bank of Scotland, Halifax, Woolwich, Nationwide, Lloyds TSB, NatWest and Santander. This means should you find a cheaper deal from a lender not on the list, HSBC won't match the offer.
The flaw in the HSBC plan was clearly shown when Chelsea released a 2 year fixed rate mortgage for first time buyers at 3.54%. As the Chelsea is not included on the HSBC list, its price promise does not apply.
As always when looking for a mortgage it is important to remember that all that glitters is not gold. A mortgage which looks on the surface a great offer, may prove to be less so when you start digging deeper.
It is therefore important to review all deals on a like for like basis to make sure you have compared all factors such as fees, rates and mortgage criteria on an equal footing.
For an independent 'like for like' mortgage review, you are advised to contact 'whole of market' broker Deal Direct on 0800 048 8828.
Call today for advice and a low rate quote.
0800 048 8828.