New mortgage deal with HSBC
HSBC has increased its lending capacity and offered some competitive mortgage deals for homebuyers with small deposits of as little as 10 per cent.
Rates start at 4.99 per cent. The bank has allocated £1 billion of funds which it says will amount to around 10,500 new mortgages as part of an approved £15 billion budget for new home loans earmarked for 2009.
During the whole of 2007 the total amount of funding for mortgages was less than half the amount proposed for 2009. There are currently only 95 deals in the market offering 90 per cent mortgages compared with almost 1,200 in 2008.
The deals come with a strict set of criteria which will make the product hard to offer to most home buyers with an average income of less than £25,000 as the income multiple allowed by the bank is only times 3. The maximum amount available to borrow is £400,000. Only HSBC Plus or Premier current account customers can apply for the new mortgage product, those on the Premier account tariff will be required to earn at least £75,000 and deposit at least £50,000 in savings and/or investments with the bank.
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