New HSBC Mortgage Deal For First Time Buyers

HSBC is targeting first time buyers with two new mortgage deals that will be available from next week.

First there will be a market leading tracker mortgage, which tracks at 3.69 per cent above the Bank of England base rate – currently 4.19 per cent.

Second there’s a two year fixed rate mortgage, which has a competitive rate of 5.09 per cent.

For both mortgages up to 90% Loan to Value (LTV) is available and the fee is only £99.

Martijn van der Heijden, head of mortgages at HSBC commented: “HSBC is keen to be there for new and existing customers, whether it’s for people looking to take their first step on the housing ladder or for people looking to improve on their current deal.

We think we can reduce the cost of borrowing for most people and we think that’s what people are after in these difficult times.”

As part of the Budget this year it was announced that stamp duty on property purchases of up to £250,000 would be cut to zero for first time buyers. As it is due to be reintroduced though at year end, you need to consider acting sooner rather than later if you want to take advantage of this no stamp duty period.

HSBC is also extending their 2.19% lifetime tracker until 31 October 2010.

If you have a higher deposit available for your house purchase then HSBC also have a 5 year fixed rate mortgage available at 3.94% for up to 60% LTV.

Be aware though that as we reported yesterday, house buyers are failing to set realistic budgets when buying their new home and may be paying £30,000 more than they intended on their house purchase with most of this extra cost funded by debt.