HSBC First Time Buyer Mortgage 90% LTV, 2 year fixed, 2.39% £499 fee
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HSBC First Time Buyer Mortgage 90% LTV, 2 year fixed, 2.39% £499 fee

25
Found 3rd Oct 2015
Finally a decent mortgage for a first time buyer with 90% LTV.

Obviously loads of T+C's but looks good to me and i am taking it.
At least £1k cheaper on fees vs the next best and a marginally better rate (0.1%)

Good luck to anyone out there trying to buy their first home
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we just did, we had no problems getting a mortgage but we found a mortgage advisor that did all the work. ended up with nationwide similar rate but only a valuation fee. I really didn't find it hard getting a mortgage or a home as long as u don't have unreal expectations .
Used HSBC 3 times for different mortgages and found them really helpful.

My only gripe with mortgage companies is how they handle over payments.....
Fixed only for two years with 90% LTV in two years it maybe difficult to move providers and your stuck with a high rate.
That is a cracking deal for 90% ltv
Do you have a direct link to the offer? I can only find a £499 fee offer exclusively for HSBC Advance customers... Not for everyone...
how good your credit must be for this deal? I have a very small default (£38) and it was very silly mistake about 3 years ago, I'm still trying to remove the default but has been trying to write to them so many times and they refused to remove it..
HSBC are known to be fickle in approving mortgages, they use their own 'internal score' to rate customers. Sounds perfectly sensible in case people over stretch themselves you might think. Well, think again! Sure they don't want people with poor history, but they also don't rate people who aren't taking a large sum relative to their income. Their system downgrades customers who won't make them enough money over the life of the loan compared to people who might stretch themselves. It's system also rates you based on how many other products they might sell you. This should set off alarm bells to the financially savvy. Don't get me wrong they're great rates if you can get them, HSBC are just engineered to pursue customers who will make them the most money.
To use an analogy it's a bit like ryanair giving gamblers priority to book the cheapest deals, that way there's a greater chance of selling them scratchcards onboard!
Original Poster
Eclairs

Do you have a direct link to the offer? I can only find a £499 fee offer … Do you have a direct link to the offer? I can only find a £499 fee offer exclusively for HSBC Advance customers... Not for everyone...



​i think it's only for advance customers, (I am one) move your current account to it, you don't have to pay for it, just pay in £1750 a month
ciaozammer

HSBC are known to be fickle in approving mortgages, they use their own … HSBC are known to be fickle in approving mortgages, they use their own 'internal score' to rate customers. Sounds perfectly sensible in case people over stretch themselves you might think. Well, think again! Sure they don't want people with poor history, but they also don't rate people who aren't taking a large sum relative to their income. Their system downgrades customers who won't make them enough money over the life of the loan compared to people who might stretch themselves. It's system also rates you based on how many other products they might sell you. This should set off alarm bells to the financially savvy. Don't get me wrong they're great rates if you can get them, HSBC are just engineered to pursue customers who will make them the most money. To use an analogy it's a bit like ryanair giving gamblers priority to book the cheapest deals, that way there's a greater chance of selling them scratchcards onboard!



Total rubbish

This is from a mortgage advisor in me

The only time they lend you less than expected is due to the duration of the mortgage by everyone does that

I work independent and what you posted is utter guess work and incorrect

Maybe the system was like this 10 years ago but it is not now

The internal
Scoring part is true as account conducts pays a huge part in mortgages everywhere. So if you constantly go overdrawn then you will struggle to prove you can afford a mortgage
mixmixi

how good your credit must be for this deal? I have a very small default … how good your credit must be for this deal? I have a very small default (£38) and it was very silly mistake about 3 years ago, I'm still trying to remove the default but has been trying to write to them so many times and they refused to remove it..



It's a tough one but if you have defaulted the only way to get a mortgage with them is if you have been a long standing customer and sometimes they override it on that basis
Lfc19titles

Total rubbishThis is from a mortgage advisor in me The only time they … Total rubbishThis is from a mortgage advisor in me The only time they lend you less than expected is due to the duration of the mortgage by everyone does that I work independent and what you posted is utter guess work and incorrect Maybe the system was like this 10 years ago but it is not now The internalScoring part is true as account conducts pays a huge part in mortgages everywhere. So if you constantly go overdrawn then you will struggle to prove you can afford a mortgage



I didn't mention anything about lending less than expected, please read my post carefully, you don't specify which bit is guess work or totally incorrect. My point really is that HSBC are more aggressive at choosing customers based on profitability than most. This could lead to many being turned down through no fault of their own, whereas another bank / building society would be very happy to lend.
A mortgage in our bloody country? Hardworking people have to stop short of finding the blood of Christ and presenting it in the holy chalice for these sons of bishop underwriters to give them a mortgage (provided they haven't largely misinterpret the documents as they've been sniffing too much powder). You need to be a "career" mum or a little ol' family of 8 from Calais to get a decent 4 bedroom place these days. Ask my uni friend. On her third marriage, 5 kids with one on the way, in a nice two storey place (admittedly rented but paid for by the govt). Whines about not being able to holiday. Classic.
Lfc19titles

It's a tough one but if you have defaulted the only way to get a mortgage … It's a tough one but if you have defaulted the only way to get a mortgage with them is if you have been a long standing customer and sometimes they override it on that basis



You're better off resurrecting Jesus and asking him to vouch for you than getting this credit file company filth to be able to sort you out. Trust me coming from someone who recently had a 14 quid mark on credit file without notice (for a cancelled sim - which wasn't cancelled 4 years ago even after giving notice). Hence I'm livid and bitter lol. I feel your pain though but hey, it's our goddamned country that allows it. Though it could be worse - Syria or America lol.
ciaozammer

HSBC are known to be fickle in approving mortgages, they use their own … HSBC are known to be fickle in approving mortgages, they use their own 'internal score' to rate customers. Sounds perfectly sensible in case people over stretch themselves you might think. Well, think again! Sure they don't want people with poor history, but they also don't rate people who aren't taking a large sum relative to their income. Their system downgrades customers who won't make them enough money over the life of the loan compared to people who might stretch themselves. It's system also rates you based on how many other products they might sell you. This should set off alarm bells to the financially savvy. Don't get me wrong they're great rates if you can get them, HSBC are just engineered to pursue customers who will make them the most money. To use an analogy it's a bit like ryanair giving gamblers priority to book the cheapest deals, that way there's a greater chance of selling them scratchcards onboard!



This sounds more like First Direct type behaviour than HSBC.
Billythebubble

Used HSBC 3 times for different mortgages and found them really … Used HSBC 3 times for different mortgages and found them really helpful.My only gripe with mortgage companies is how they handle over payments.....



I found HSBC rubbish, I went to them first as I had banked with them my whole life. They wouldn't even lend me enough to get a studio flat (in the south East), I knew I could easily afford it. Went elsewhere and got offered double immediately.

If I'd have given up at HSBC I'd still be renting.. But instead, 5 years later, not banking with HSBC anymore and I'm in a 4 bed house with 60% LTV.

Definitely something wrong with the way HSBC measure suitability.
Edited by: "delusion" 4th Oct 2015
What sort of salary multiple are people buying with?
BS tend to lend more than old style banks in my experience, excl. new banks eg Halifax and Santander.
Original Poster
delusion

I found HSBC rubbish, I went to them first as I had banked with them my … I found HSBC rubbish, I went to them first as I had banked with them my whole life. They wouldn't even lend me enough to get a studio flat (in the south East), I knew I could easily afford it. Went elsewhere and got offered double immediately. If I'd have given up at HSBC I'd still be renting.. But instead, 5 years later, not banking with HSBC anymore and I'm in a 4 bed house with 60% LTV. Definitely something wrong with the way HSBC measure suitability.



​that was 5 years ago, the mortgage world has changed a lot since then as there was a lot of risk just after the crash
Just after the crash we had to stump up 15% deposit on a 135,000 House paying 4.99%
Great to see these sort of deals.Hot
Nad_84

​that was 5 years ago, the mortgage world has changed a lot since then as … ​that was 5 years ago, the mortgage world has changed a lot since then as there was a lot of risk just after the crash



The rest of the mortgage world were fine, it was just HSBC that were the issue. If they have changed since then great
Property must not be more than £400k
My partner and myself earn over 40k each and we have 100k in equity in property and HSBC would only offer us 92k. We are early 30s and have never been unemployed. A joke of a company.
Great deal if you can get it! My partner and I recently bought a house and we had to go through a broker. Most lenders wouldn't approve our salaries as I had under a year of work history (At the time I'd only graduated and started work 9 months ago) and my partner had changed jobs in the last year and was still in the probation period. We went for a 5yr fixed mortgage as we can comfortably afford it and also afford overpayments. This is a good deal, but bear in mind the economy will probably be very different in a couple of years!
I am always concerned when I see mortgage products on here as I dont want anyone to be swayed into making a decision based on it getting a hot vote on this site. always do thorough research, preferably well in advance of making a decision to buy a house and compare many products and find the ones that fit your specific needs. a low rate is not all that matters and no one knows what the rate will be in 2 years when it ends.

as a first time buyer, the chances are you will be taking on very very large amounts of debt, so factor in future changes before making any decision. factor the costs in at the 5% mark, even though we all know that should be a long way off, if ever. but its your home and your money, so look at the medium and long term. a longer fix but with a higher rate might be a better idea. it might not, but it might.

I only say this as someone who bought their first home 4 years ago and the amount of information is bewildering and the actual non biased information was a bit thin on the ground, especially if you don't have a financial advisor.

its a fair rate the number critical illness definitions covered on their policy is lower than available elsewhere being tied they can only offer their own product- best to shop around, if anyone wants a comparison drop me a pm
Coventry have a fee free 5 year fix at 3.65% at 90% loan to value
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