Current mortgage deals 'are an excellent opportunity'

Date:Friday 4th September 2009
Author: Max Freedman

First-time buyers have an excellent opportunity to get competitive mortgage rates if they have a large enough deposit, according to an industry insider.

Jon Brown, partner relationship manager at, made his comments following the news that HSBC is offering a mortgage at 1.99 per cent interest.

He claimed that it showed courage by the bank, but would not guarantee that all renters would suddenly decide to take out a mortgage.

"Hopefully these first few lenders offering 1.99 per cent mortgages will spark a trend with other lenders offering similar rates with a more accessible deposit," he said.

Mr Brown went on to sat that he expected to see an increase in home buyers, but that he was not yet convinced that the housing market was back in full health yet.

The HSBC 1.99 per cent mortgage in question is available over a two-year term if a customer is able to pay 40 per cent of the value of the property as a deposit.