HSBC has pledged to making a further £350 million available to borrowers with equity or a deposit of 15% or less until the end of the year.
A minimum of £250 million will be reserved for first-time buyers in this bracket by the end of the year. Maximum loan to value is 90%.
The bank says it has provided a mortgage to one in eight first time buyers during 2011 and that it has already lent more than double the amount to applicants with a 15%-20% deposit in 2011 compared to the whole of 2010.
The support for first-time buyers continues today with the launch of new high LTV rates. In addition, all 85% and 90% LTV rates will be available fee free.
New mortgage rates for customers with a 10% deposit include a 4.09% above base rate lifetime tracker (current pay rate 4.59%) (fee free) 4.49% two year fixed (fee free) and
4.89% five year fixed (fee free).
New rates for customers with a 15% deposit include a 3.49% above base rate lifetime tracker (current pay rate 3.99%) (fee free) 4.29% two year fixed (fee free) and a 4.69% five year fixed rate mortgage (fee free).
Peter Dockar, head of mortgages at HSBC, said: “In 2011 we have continued to offer very competitive rates and great advice to those with a relatively small deposit which has helped us to increase the amount we have lent to first time buyers.
