The Hong Kong and Shanghai Banking Corporation-HSBC declared new rates of mortgages for prospective home buyers and real estate investors.
The brand new mortgage rates have come into effect Jan. 2. The changes include a 4.19 percent provision for a 90 percent loan value borrower on a fixed rate of mortgage for two years. The percentage is higher on a longer period of mortgage. A 4.9 percent provision is declared for a 90 percent loan borrower with a fixed rate of mortgage for five years, reports MyFinances.co.uk
Currently, all the 90 percent loan-to-value rates are free of any charges for customers who already possess a current account with the bank. However, a valuation cost is charged for customers who do not hold a current account with the bank, reports Reuters.
HSBC is also offering lucrative mortgage borrowing rates for customers having larger equities or deposits with the bank. For wealthy customers, a 2.9 percent provision will be made for 60 percent loan value with a fixed mortgage rate of 3 years, reports Reuters.
HSBC will also be upholding a 1.99 percent rate for two year fixed mortgages, which will be the lowest rate that the bank has ever maintained, reports Property Wire.
"We worked hard last year to help UK borrowers with the aspiration to own their own home and we will continue to offer competitive rates to both first time buyers and existing homeowners" Peter Dockar, head of mortgages at HSBC told Reuters.
"The two-year fixed deal at 4.19% is among the top deals in that sector and the five-year fixed deal at 4.69% is the best rate with no fee. These deals are also very competitive for new customers where a reasonable GBP 599 fee applies. It's fantastic to see existing customers rewarded with a fee free option - first-time buyers in particular will welcome any help towards set up costs" Rachel Springall, financial specialist at Moneyfacts.co.uk told Property Wire.
The new rates will attract prospective investors to the real estate sector. Existing investors will also benefit from the new deals. Business for the banking giant should see a positive surge with the aforementioned introductions.