HSBC has launched two new mortgage deals that come with loans-to-value (LTVs) of up to 90 per cent and fees of just £99.
Aimed at first-time buyers and available from September 13th, the first is a tracker mortgage set at 3.69 per cent above the Bank of England base rate, meaning that it has a current rate of 4.19 per cent.
The second is a two-year fixed deal that has a rate of 5.09 per cent. Along with all the mortgage specials in HSBC's new range, it carries fees of just £99.
With stamp duty also being reduced to zero for first-time buyers making house purchases worth up to £250,000, the new offer comes at a good time for new homebuyers.
Martin van der Heiiden, head of mortgages at the bank, said: "HSBC is keen to be there for new and existing members, whether it's for people looking to take their first step on the housing ladder or for people looking to improve on their current deal.
"We think we can reduce the cost of borrowing for most people and we think that's what people are after in these difficult times."
Among the other products in HSBC's new range is a fie-year fixed mortgage that has a maximum LTV of 60 per cent and offers a rate of 3.94 per cent. The same terms can be secured on a two-year deal with a rate of 2.89 per cent.
It is also offering a Tracker Special deal with a current rate of just 2.19 per cent (1.69 per cent above base rate) that is available on mortgages up to 60 per cent of a property's value.
The news comes as the Bank of England's monetary policy committee revealed that it intends to hold the base rate at 0.5 per cent for the 18th consecutive month in September.
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