HSBC launches range of 5% mortgages as Government bids to boost homeownership
The range includes mortgages fixed for two or five years with a maximum loan of £400,000 for direct customers
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HSBC has launched a new range of 5% deposit mortgages as a Government scheme to boost low-deposit home buying gets underway.
Lenders boosting supply of 5% deposit mortgages as UK Government scheme launches April 19 2021, 12.03am
Home buyers with deposits as low as 5% will find more deals available from Monday, as a new UK Government-backed mortgage scheme gets under way (Dominic Lipinski/PA)
Home buyers with deposits as low as 5% will find more deals available from Monday, as a new UK Government-backed mortgage scheme gets under way.
Several of Britain’s biggest mortgage lenders are turning on the taps to boost the supply of low deposit home loans, under an initiative unveiled in the Budget.
The Government scheme is being made available to lenders from Monday.
Banks unveil new 5% deposit mortgage ranges under Government-backed scheme
Updated: April 19, 2021, 11:45 am
Banks have started to unveil the 5% deposit mortgage deals they will be offering under a new Government scheme (Joe Giddens/PA)
Major banks have unleashed a wave of new 5% deposit mortgages onto the market, as part of a new Government-backed scheme to help first-time buyers and home movers.
Here is a round-up of what some banks have said so far:
– Barclays
Barclays has two new products under the scheme. It is offering a two-year fixed-rate fee-free deal on loans of between £25,000 and £570,000, with a rate of 3.99%.
It is also offering a higher rate of 4.09% for borrowers who want to fix their mortgage for a longer period of five years.
New 95% mortgage scheme launches
A new government-backed mortgage scheme will help first time buyers or current homeowners secure a mortgage with just a 5% deposit.
From:
95% mortgage guarantee launches today, available on high streets across the country
Scheme part of a range of ownership options to help make home ownership a reality
New figures show demand for home ownership has soared during lockdown, with nearly 80% of private renters now saving for a deposit
Today’s launch further strengthens government commitment to supporting the housing sector
A new government-backed mortgage scheme to help people with 5% deposits get on to the housing ladder is available to lenders from today (19 April 2021).
The new 95% loan-to-value (LTV) deals are now available from HSBC. The product range includes mortgages fixed for two or five years, available to single or joint applicants, with the same rates whether taken out direct through advisers or through a broker. They include a two-year fixed-rate deal at 3.99% with a £999 fee, or one for the same period without this fee for a higher rate of 4.29%. Five-year fixed-rate deals are available at 4.29% with a £999 fee, and 4.49% without this fee. HSBC said its maximum loan size available through brokers is £500,000. For direct customers it is currently £400,000, but it will be increasing this to £500,000 at a later date.