HSBC launches 90% first-time buyer deals

HSBC has launched two mortgages aimed at first-time buyers available up to 90% LTV and with a fee of £99.

The deals, available from 13 September, are a lifetime tracker mortgage charged at 3.69% above Base Rate, giving a current rate of 4.19%, and a two-year fixed rate deal at 5.09%.

In addition, HSBC has extended its 2.19% lifetime tracker with £99 fee until 31 October 2010.

HSBC struggled to cope with the demand for the product when it initially launched, but claims that four out of five mortgage applications are being approved.

Martijn van der Heijden, head of mortgages at HSBC, said:

"HSBC is keen to be there for new and existing customers, 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."