[Rinoa]

HSBC

Quote

HSBC to launch 90% mortgages
HSBC is launching a range of mortgage products with loan-to-value (LTV) maximums of up to 90%, backed with £1bn of funding.

This is part of HSBC's £15bn fund it has allocated for new mortgage lending in 2009: twice what the bank lent in 2007. The new deals reflect the bank's commitment to continue lending to UK homeowners at competitive rates and will be available from April 14.

The mortgages will be available to HSBC Plus account and Premier customers. HSBC current account customers and those not currently with HSBC are welcome to open a Plus account to take advantage of the offers.

Over the past 12 months, neither first-time buyers nor homeowners with relatively low levels of equity have been able to take advantage of the falling cost of borrowing. By making £1bn available to buyers with deposits of just 10%, HSBC is trying to remedy the situation with a market leading rate of 4.99%, fixed for two years.

Joe Garner, group general manager of HSBC's personal financial services, said: "Although house prices have fallen, and continue to fall, they won't fall forever. At HSBC we are standing by our customers through thick and thin and these changes mean we can continue to give customers the best possible deal on their mortgage. This is a one billion pound commitment and it says we appreciate our customers' loyalty."

A two-year fixed rate with a maximum LTV of 90% is available at 4.99% and carries a booking fee of £1,499. The range also includes a two-year fixed rate of 5.49%, with a fee of £199. Both these mortgages are available for house purchase only.

Are lenders beginning to see an end to falls?

This post has been edited by Rinoa: 08 April 2009 - 10:13 AM

[Lone_Twin]

Rinoa, on Apr 8 2009, 11:11 AM, said:

HSBC


Are lenders beginning to see an end to falls?

I don't know, are they?

[rw42]

2 year fix? You must be flucking joking.

[sbn]

They have made no secret about trying to grab large chunks of the mortgage market. HSBC have escaped unscathed from all of this precisely because they didnt do mortgages in great numbers. They are probably the best financed bank in existance at the mo and in order to capitalise on this they need to jump in before everyone else. Things will pick up again Rinoa, nearly everyone here will agree with that. The question is when. HSBC will take the hit in the short term in order to be positioned as the biggest lender when HPI starts all over again. About 2015 is my guess.

[the flying pig]

you pay £1500 for the 2 year fix at 5%??

so, for a cheap [below about £130k] FTB property, you're better off with the much lower fee and the 2 year fix at 5.5%.

and in both cases it is only, of course, a two-year fix...

what sort of income multiples will they lend?

This post has been edited by the flying pig: 08 April 2009 - 10:23 AM

[getdoon_weebobby]

90% @ 3.99%
then we are talking terry tibbs styley

actually forget that ive a big deposit so lets keep the 60% ltv going!

2 year fix ah ha ha ha ha

anyone taking a 2 year fix will end up like the yanks taking a 2 year fix in 2003/04. 2 years later interest rates have risen 15 times.

[Dosser]

Rinoa, on Apr 8 2009, 11:11 AM, said:

HSBC


Are lenders beginning to see an end to falls?

Never mind what they're expecting, I'm expecting massive inflation and interest rates to go through the roof.

You take the chance that you come off that fixed rate in 2 years time and get one almighty kick to the nads.

Considering BOE rates are 0.5%, they're still ripping the pish.

A 10 year fix at 3-4%, that would be bringing something serious to the table.

D

[the primitive]

Rinoa, on Apr 8 2009, 11:11 AM, said:

HSBC


Are lenders beginning to see an end to falls?

£1500 to fix for 2 years at only 4.5% above base rate? And only if I sign up for a bank account with a monthly fee for F8ck all?

Where do I sign?

[Joey Buttafueco Jr]

Rinoa, on Apr 8 2009, 11:11 AM, said:

HSBC


Are lenders beginning to see an end to falls?

With two year swaps around 2.2%, and the fact that you have to join their poxy account, I put it to you that they are pricing in plenty of risk.

[oldsport]

very interesting move

But I reckon the ncessity to open a Plus account shows it's all about cross selling, which everyone seems to think is now the main growth area for banks

Can't think any other bank will be in a position to take this risk as a loss leader

[Harry Monk]

Rinoa, on Apr 8 2009, 11:11 AM, said:

Are lenders beginning to see an end to falls?

No, or they would be offering 100% mortgages.

[Grayphil]

For the plus accounts, you must pay 12.95 per month, also premier you need 50,000, gbp account, for both accounts you need to have a good credit rating.

[ace100]

Harry Monk, on Apr 8 2009, 10:32 AM, said:

No, or they would be offering 100% mortgages.

Ah, but once a few start offering 90% all the rest will follow, and will it not be a case then of "I take your 90% and raise you 10%" by one northern rock type gambler?

[spivT]

Grayphil, on Apr 8 2009, 11:33 AM, said:

For the plus accounts, you must pay 12.95 per month, also premier you need 50,000, gbp account, for both accounts you need to have a good credit rating.

yep. And i suspect they are not going to be lending at silly multiples. Meaning once again, still the best position to be in this market as a buyer is to have a minium 25% deposit, and wait for some more % drops in house prices to get real value for money.