HSBC has reduced the mortgage interest this week and has made improvements in its buy-to-long range of deals.
The mortgage provider has reduced interest rates on hundreds of home mortgages by a maximum of 0.20%.
One of the highlights of these new prices is a fixed rate of two years for buyers with a deposit of 10% that has been reduced by 0.14%. It now has a percentage of 4.85%. It comes with a £ 999 Product costs And £ 250 cashback and is also available for first buyers.
In the meantime, remortgagers can benefit from a rate of 4.11% at the two-year fixed rate of HSBC for Premier customers with a reimbursement of £ 999. This is available for people with 40% equity.
Buy-to-Let customers who use a broker will also benefit from improvements that HSBC has made in his mortgages for landlords. It has increased the maximum loan-to-value (LTV) to 80% for loans up to £ 400k. The new range comprises rates at 5.00%, available for a fixed rate of five years with £ 1,999 reimbursement. It means that borrowers can buy a property with a smaller down payment.
These changes, which will come into effect from today (Wednesday 12 March), come after HSBC has been reduced in his Standard variable speed (SVR) with 0.25% to 6.74%.
This is the rate to which borrowers return at the end of their deal if they do not switch to a new product.
Currently, according to Moneyfacts, the average SVR in the UK is 7.68%. However, borrowers are reminded that the SVR – even when competitive – is usually still much higher than the rate that you could reach if you switched to a new mortgage agreement.
Oli O’Donoghue, HSBC UK’s head of the mortgage, said: “We are constantly evolving to help people with their ambitions of the home tube.”
She added: “There is still a strong demand in the buy-to-let market, and by increasing the maximum LTV on our range to 80% LTV we make the purchase of a buy-to-loet no-ending good that is more accessible to people and offers greater flexibility, making a reduced deposit possible.”