This is part of HSBC's £15 billion fund it has allocated for new mortgage lending in 2009: twice what the bank lent in 2007.
The new deals reflect the bank's commitment to continue lending to UK homeowners at competitive rates.
The new mortgages will be available to HSBC Plus account and Premier customers. HSBC current account customers and those not currently with HSBC are welcome to open a Plus account to take advantage of the offers.
Over the past 12 months, neither first time buyers nor homeowners with relatively low levels of equity have been able to take advantage of the falling cost of borrowing. By making £1 billion available to buyers with deposits of just 10 per cent, HSBC is trying to remedy the situation with a market leading rate of 4.99 per cent, fixed for 2 years.
Joe Garner, group general manager of HSBC's personal financial services said: "Although house prices have fallen, and continue to fall, they won't fall forever. At HSBC we are standing by our customers through thick and thin and these changes mean we can continue to give customers the best possible deal on their mortgage. This is a one billion pound commitment and it says we appreciate our customers' loyalty."
Today's environment is somewhat different to the previous 12 months. First time buyers are starting to show some appetite to re-enter the market and mortgage holders are displaying a responsible attitude to their borrowings, by taking advantage of low base rates and repaying larger amounts of capital each month.
A selection of HSBC's mortgage range, with 90% LTV available from 14th April 2009:
Mortgage - Rate - Max LTV - Booking fee
Two year fixed rate (Home purchase only) - 4.99 % - 90 % - £1499
Two year fixed rate (Home purchase only) - 5.49 % - 90 % - £199
Lifetime Tracker (Home purchase only) - 4.59 % - 90 % - £999
3 year fixed rate - 3.99 % - 75 % - £599
2 year discounted rate - 2.49 % - 60 % - £249
Remortgage customers will be unable to apply for this range of products, however many borrowers will find their existing lender's standard variable rate to be their cheapest option when they roll off their fixed, tracker or discount deals. In addition these new mortgages will only be available from HSBC's branch network and customers will be taken through the implications of borrowing in detail.
HSBC was recently named the most competitive mortgage lender of 2008 as the bank's mortgages appeared as ‘Best Buys' more often than any other lender. In addition, Defaqto named First Direct (part of the HSBC Group) and HSBC as first and third respectively for having the lowest standard variable rates during 2008.
