HSBC is offering a lifeline to homeowners looking for a 90% loan-to-value mortgage.
The bank has confirmed that it is releasing £1 billion to lend to consumers who have 10% of their property’s value in savings.
Consumers seeking a 90% mortgage can apply for two-year deals, fixed at 4.99% or a lifetime tracker. This option shadows the Bank of England rate, and is currently set at 4.59%.
Both deals are available to existing HSBC customers looking to buy a new home.
Dan Moore from Which? said: ‘It’s encouraging to see that at least one lender is willing to offer consumers a decent deal. Too many people are stuck with their current lender. It is to be hoped that more lenders will follow HSBC’s lead.’
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