HSBC and First Direct Offer Mortgage Deal at 3.49 percent

HSBC the bank that has managed to stay relatively strong compared to its rivals during the global financial crisis announced that they will be increasing mortgage lending by 20 percent next year.

First Direct which are part of HSBC (LON:HSBA) had even more good news for the mortgage market, the on-line bank has announced a new lifetime tracker offset mortgage product at 1.49 percent above base, putting the rate at 3.49 percent, this mortgage product only holds a £599 lenders fee and is available to homebuyers with a 80 percent Loan to Value (LTV).

First Direct also released a repayment mortgage lifetime tracker at 1.69 percent over base putting the product rate at 3.69 percent. This holds a £399 lenders fee and is also available for homebuyers with 20 percent deposit.

HSBC cut its Standard Variable Rate (SVR) to 4.44 percent and was one of the first banks to cut by the full 1 percent, with First Direct, HSBC’s on-line banking arm also reducing its SVR by 1 percent to 4 percent.

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