Spotlight On: HSBC's 90% LTV Mortgage

 

Simon Read
Saturday 26 November 2011 01:00 GMT
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The deal

HSBC is offering a 3.84 per cent two-year discount deal to those with a deposit of just10 per cent.

The good points

There don't appear to be any other deals so low at the moment for those needing a 90 per cent loan-to-value loan. The mortgage also has no fee – others charge up to £1,000 to arrange a loan.

The bad points

It's a discounted rate, so interest will climb after two years to the bank's standard variable rate, which is currently 3.94 per cent. If base rates rise, the interest rate charged will also climb.

Conclusion

There are cheaper discounted rates, but not if you've only got a deposit of 10 per cent. HSBC is not charging a fee on its 85 per cent and 90 per cent loans at the moment, which is to be applauded. If you need a mortgage, this is one to consider.

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