HSBC has announced a £1,500 cashback incentive for first-time buyers, alongside reductions to its fixed-rate mortgage products. The banking giant has lowered selected residential mortgage rates by as much as 0.29 percentage points, with its five-year fixed-rate deal for purchasers with a 5% deposit now standing at 5.37%.
Expert Analysis on the Incentive Package
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, commented: "The deal also offers a lucrative incentive package which includes a free valuation, £1,500 cashback and no payable fees, which may make this an ideal option for first-time buyers looking to keep costs to a minimum."
Eligibility for First-Time Buyer Status
You will be considered a first-time buyer if you have never owned a residential property in the UK or anywhere else in the world, and you intend for the property to be your main home. For joint mortgage applications, both applicants must never have previously owned a property.
HSBC's Commitment to Supporting Homebuyers
Speaking last year, Oli O’Donoghue, Head of Mortgages at HSBC UK, which has branches in Birmingham, said: "We are absolutely focused on supporting customers manage the cost of buying a home in the best way we can, while remaining committed to responsible, sustainable lending. As part of this, we are continuously reviewing our mortgage product range to ensure it offers strong value for customers. This year so far, we have already helped 28,000 first-time buyers realise their homebuying dreams and have delivered improvements to affordability and loan to income to support this. Expanding our first-time buyer cashback incentive and increasing the amount we offer goes even further to help more customers make that first step on the property ladder."
Understanding Loan to Value (LTV)
It is worth considering what your Loan to Value (LTV) will be. Your LTV is the ratio between the value of the property and the amount of loan you take out, shown as a percentage. For example, a £100,000 property with an £80,000 mortgage would have an 80% LTV. Mortgages with a lower LTV will likely have lower mortgage rates than higher LTV mortgages.
