First-time buyers to miss out on HSBC deal

First-time buyers will be one group that does not benefit from an opportunistic intervention in the mortgage market by HSBC.

The bank has revealed it is to offer a remortgaging deal in which it will match the rates currently being paid by those on fixed-rate deals, which are due to expire this year.

It is able to offer cheaper deals than other banks because it currently has a low mortgage market share and has raised its capital through customer deposits rather than the money markets, leaving it unharmed by the high interbank lending rates affecting other lenders.

UK head of personal finances Joe Garner told the Financial Times: "We're in an incredibly strong position while others are stepping back."

However, with such deals only for remortgaging, those still trying to get on the housing ladder will see no benefits.

In the meantime, other lenders have continued to withdraw deals such as 100 per cent loan-to-value, with Abbey having now axed the last of these deals on the market.

Aspiring householders unable to get a favourable mortgage may consider the alternative option of self build.


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