HSBC has reduced by 0.5% the rates for first time buyers on its tracker mortgages for those with a 10% deposit. It wasn’t that long ago when first time buyers needed to put down considerably larger deposits in order to have any type of mortgage.
The lifetime tracker is currently at 4.49% made up of the base rate plus 3.99%.
The mortgage is fee-free, available up to £250,000, and has no early repayment charge and will remain at base rate plus 3.99% for the life of the loan.
Whilst borrowers can move at any time if house prices fall or mortgages are further rationed borrowers may find that they are stuck on this product and unable to move to alternative lenders.