HSBC mortgage costs have been cut for first-time buyers

HSBC mortgage costs have been cut for first time buyers. At 3.84% HSBC are offering the lowest 2 year mortgage deal available for those with a deposit of 10%.

The bank is offering it's 3.84% 2 year discounted mortgage deal with no fee to pay. They say that this is the only mortgage with a rate of less than 4% for first-time buyers. For the first 2 years the mortgage rate will be 0.1% below the bank's standard variable rate, which is currently 3.94%.

It is the first ever HSBC mortgage deal below 4% for people wanting a high loan-to-value ratio, and could be a real benefit to those hoping to move house or get on the property ladder. First-time buyers may be more comfortable with a fixed rate deal where they have the comfort and security of knowing that their monthly repayments will remain at a level they know they can afford. There are also deals available on 2 and 5 year fixed rate mortgages for those with low deposits.

Head of HSBC mortgages, Peter Dockar said: "We are committed to supporting first-time buyers and last month we pledged to make a further £350m available to borrowers with equity or a deposit of 10%-15% by the end of the year."

The new HSBC mortgage deal will provide additional help to prospective buyers with smaller deposits who have been unable to find a mortgage, and could help first-time buyers get a foot on the property ladder.