HSBC could be set to start a possible price war over Help to Buy mortgage deals.
The bank has become the third major lender to start offering products under the government-led scheme from today (November 25th).
It will offer customers packages which currently undercut those on offer from competitors Royal Bank of Scotland and Lloyds Banking Group. The first deal will see consumers take a two-year fixed rate at 4.79 per cent, while the second is a five-year fixed rate at 4.99 per cent. A £99 product fee is also applicable for both.
However, the bank has also said that its affordability criteria will still be tough – with the five per cent deposit rules only applying if the potential borrower has at least £10,000 to put down in the first place.
HSBC’s head of retail banking and wealth management Brendan Cook said: “We want to support our customers, whether they are buying their first home or moving up the housing ladder.
“In order to protect them, we want to ensure they can afford their repayments when interest rates rise,” he added.