Leeds Building Society and HSBC have today reintroduced 90% loan-to-value mortgages to the market for borrowers with small deposits or equity contributions.
The lenders follow a number of other banks and building societies who have relaunched products for borrowers with 10% to put down on their property purchase.
Back in the summers most lenders decided to pull mortgages aimed and people who needed to borrow up to 90% of their property’s value. This was down to the economic impacts of the Coronavirus outbreak.
HSBC’s offering, available direct from the bank or via brokers, comes in the shape of either a two-year or five-year fixed rate deal.
Both home purchasers and remortgagers can take advantage of the deals which have rates starting at 3.69% for the two-year option and 3.84% for the a five-year fixed rate. Fees apply.
Michelle Andrews, HSBC UK’s head of buying a home, said: “Home-ownership dreams may have seemed even further away for many first time buyers of late, but with more providers returning to 90% LTV mortgages, they may be closer to becoming a reality, which is great news.
“Lower rates across other LTVs is also great news, and could well provide those looking to remortgage, switch rates or those on an SVR with some important savings on their current monthly outlay.”
Leeds Building Society, meanwhile, is also offering two-year and five-year fixed rate options at 3.44% and 3.50% respectively for both purchasers and remortgagers.
Matt Bartle, Leeds Building Society’s director of products, said: “While we’re currently experiencing another lockdown as 2021 has begun, this time around there should be much less impact on the functioning of the housing market as estate and letting agents, and removal companies, can continue to operate.
“These differences to last March’s lockdown – and the strong recovery of the housing market in the latter half of 2020 – gives us grounds for optimism, even though overall economic conditions clearly remain uncertain.
“We keep our products, rates and lending criteria under constant review to ensure we can continue to support customers who are not well-served by the wider market, informed by insight such as the feedback we seek and receive from our intermediary partners.”
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