The 90% LTV 7 year HSBC mortgage could start a new price war.
It is hoped that the launch of a new low deposit HSBC mortgage could start a price war between lenders competing for first time buyer business.
The majority of rate cuts and historically low offers have been aimed at high deposit borrowers, however if lenders continue to forget the first time buyer sector the market could falter further. Without first time purchases the whole property chain ceases to function as it should.
If the new HSBC mortgage sparks a mini mortgage rates war it could be of great benefit to the first time sector. This new low deposit HSBC deal has been released for 90% LTV at 4.89%, it is a fee free and fixed for 7 years.
Longer term fixed rates offer mortgage-holders the chance to lock into a deal that offers them peace of mind and increased financial security. With its new 7 year fixed rate HSBC has undercut many other lenders longer term offerings.
The HSBC deal is set at a cheaper level than most other first-time buyer deals. Lenders have been highly competitive with their rates for lower risk business and now it is hoped higher risk borrowers will start to benefit from lower rates.
First time buyers are missing out on lenders lowest rates but this may change with the new low rate 7 years fix. Usually where one lender leads other soon follow.
If you want to compare the new longer term HSBC mortgage against others lenders offer call Deal Direct.
Contact Deal Direct for a low rate mortgage quote.
