HSBC's mortgage announcement "great news" for consumers

Date:Thursday 9th April 2009
Author: Max Freedman

The announcement made recently by HSBC concerning mortgage funding allocation has been welcomed by one organisation.

Earlier this week, the lender revealed it has allocated an additional £1 billion to a new range of mortgages with loan-to-values of up to 90 per cent for first-time buyers (FTBs).

Responding to the development, said: "[HSBC's] decision to cut the rates on its loans available up to 90 per cent is great news for FTBs trying to get on to the housing ladder and existing borrowers who don't have much equity in their home."

The price comparison site went on to say that HSBC's move will spur other lenders into making new loans available.

In this way, competition in the UK's home loan market for consumers with smaller deposits will increase, added.

Among the products HSBC is making available is one which comes with a rate of 4.99 per cent and is available on a two-year fixed-rate basis.