HSBC has released a new range of mortgages that will have first time buyers jumping for joy this week as they are available with a deposit of only 10 per cent.

Previously, HSBC was offering a maximum loan-to-value (LTV) of 85 per cent and first time buyers have been struggling to find mortgages for smaller deposits. There have been a few on the market but the fewer there are, the less competitive they tend to be so the news of another major mortgage lender joining the 90 per cent offer again is good news.

HSBC bank has reportedly allocated £1 billion of funding to this new mortgage ranger and for those with just a 10 per cent deposit, HSBC is offering an interest rate of 4.99% at a fixed rate for a two year period, which at the time of writing is certainly one of the best deals out there for those looking at this sort of mortgage deal.

These last few months have seen a great increase in the number of mortgage deals available. After Christmas, there were few good deals available for those with less than a 40 per cent deposit.

Joe Garner, group general manager of HSBC’s personal financial services, said:

“Although house prices have fallen, and continue to fall, they won’t fall forever. These changes mean we can continue to give customers the best possible deal on their mortgage. A 10% deposit is an achievable target for first-time buyers and it’s great that these borrowers now have the chance to secure a good value deal. Hopefully this move will increase competition in the higher LTV market.”

Those undergoing mortgage advisor CeMAP training at the moment will no doubt welcome the move too and hope that other major mortgage lenders will soon follow the lead of HSBC.

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