Tuesday, April 14, 2009
Enslave yourself now
HSBC's shock decision to slash the price of home loans for buyers with just a 10pc deposit could breathe new life into the ailing property market. Until now, typical interest rates for buyers with small deposits had barely budged since last summer, despite the Bank of England base rate being slashed. HSBC's new deal, at 4.99%, is a full percentage point below its nearest competitor. But those who are turned away from the usually conservative lender will find the next best deal is much more expensive. Money Mail figures show that first-time buyers are expected to put down a whopping £30,238 deposit on average if they want to get a home loan.