HSBC offers lifeline to first-time buyers

HSBC has reinstated its 10% deposit mortgages, and is again offering two and five-year fixed-rates for purchases and re-mortgages with up to 35- year terms. HSBC was one of the few lenders to keep selling low deposit mortgages during the coronavirus pandemic when most lenders became fearful of approving riskier loans. However, the lender pulled out in September after becoming flooded with demand from borrowers seeking loans of 90% of a property's value. Barclays cut the rates and eased restrictions on its 90% mortgages last week, having resumed offering five-year fixed rates for people with low deposits in December. It now also has a two-year fixed-rate deal at 3.55% with a £999 fee for borrowers with a 10% deposit, or 3.75% with no fee.

The Times (09/01/2021)