It also announced today (Friday 14 October) that its new high LTV mortgages come with zero fees.
The bank said that it has provided a mortgage to one in eight first time buyers during 2011 and has been supporting them by offering more competitive rates for customers with a relatively small deposit.
As a result, HSBC has already lent more than double the amount to applicants with a 15% to It pointed out that even though the number of first time buyers in the UK has been under 200,000 in each of the past three years, less than half the 500,000 a year seen previously, home ownership is still an aspiration for many people.
A recent HSBC survey found that 78% of all non home owners who have never bought before aspire to be homeowners.
New mortgage rates for customers with a 10% deposit include: 4.09% above base rate lifetime tracker (current pay rate 4.59%), fee free, 4.49% two year fixed also fee free, and 4.89% five year fixed fee free.
New rates for customers with a 15% deposit include: 3.49% above base rate lifetime tracker (current pay rate 3.99%) fee free, 4.29% two year fixed fee free, and 4.69% five year fixed fee free.
‘In 2011 we have continued to offer very competitive rates and great advice to those with a relatively small deposit which has helped us to increase the amount we have lent to first time buyers,’ said Peter Dockar, head of mortgages at HSBC.
‘Today's announcement of fee free rates and a pledge to make a further £250 million available to first time buyers in 2011 shows HSBCs commitment to continuing to help people get on the housing ladder,’ he added.
