Leeds, HSBC become last lenders to release 90% LTV mortgages
Leeds Building Society and HSBC have now reintroduced 90% mortgages to the market for borrowers with small deposits or equity contributions.
Lenders follow a number of other banks and building societies that have relaunched products for borrowers with a 10% deposit on their real estate purchase.
In the summer, most lenders decided to withdraw mortgages from people who needed to borrow up to 90% of the value of their property. This is explained by the economic impacts of the coronavirus epidemic.
HSBC’s offer, available directly from the bank or through brokers, comes in the form of a two- or five-year fixed rate transaction.
Homebuyers and remortgagers can take advantage of offers that start at 3.69% for the two-year option and 3.84% for the five-year fixed rate. Charges apply.
Michelle Andrews, Head of Home Buyers at HSBC UK, said: “The dreams of homeownership may have seemed even more distant for many first-time homebuyers lately, but with more and more providers reverting to 90% LTV mortgages they may be closer to becoming a reality which is great news.
“The lower rates on other LTVs are also great news and may well allow those looking to remortgage, change rates or those on an SVR a significant savings on their current monthly expenses.”
Leeds Building Society, meanwhile, also offers two-year and five-year fixed rate options at 3.44% and 3.50% respectively for buyers and remortgagers.
Matt Bartle, Product Manager for the Leeds Building Society, said: “While we are currently experiencing another foreclosure as 2021 has begun, this time around there should be much less impact on how the market works. housing as real estate and rental agents, and moving. companies, can continue to operate.
“These differences compared to the foreclosure of last March – and the strong recovery in the housing market in the second half of 2020 – gives us cause for optimism, even though overall economic conditions remain clearly uncertain.
“We are constantly reviewing our products, rates and lending criteria to ensure that we can continue to support clients who are not well served by the broader market, informed by information such as the feedback we seek and receive from our intermediary partners. “
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