- Advertisement -
Home News First-time buyers face rising mortgage costs as HSBC and TSB up high...

First-time buyers face rising mortgage costs as HSBC and TSB up high LTV rates

- Advertisement -

Banks are hiking mortgage rates for homebuyers who can only put down deposits worth 10 per cent of the property value.

A range of lenders increased their rates on high loan-to-value mortgages last week, even though the Bank of England interest rate has remained rock bottom at 0.1 per cent.

Those worst affected will be first-time buyers, who typically borrow 90 per cent or more of their property’s value.

A range of lenders increased their rates on high loan-to-value mortgages last week

HSBC – one of the few major banks still taking on first-time buyers with smaller deposits – increased rates on its fixed rate 90 per cent loan-to-value deals.

Skipton Building Society increased rates on all three of its standard residential deals at 85 per cent loan to value.

TSB pushed its rate up from 2.54 per cent to 2.79 per cent for its two-year fix at 80 and 85 per cent loan to value and its five-year deal went up from 2.34 per cent to 2.59 per cent.

Co-op intermediary Platform also increased the rate on its 90 per cent loan to value, fee-free five-year fix by 0.20 and other rates up by 0.25 per cent.

David Hollingworth of London & Country Mortgages said: ‘In historic terms, these are still very low rates, but lenders are having to chop and change because of the challenges they’re facing. 

Demand has come back strongly and because there are so few lenders at this end of the market they need to manage business carefully.

‘If one lender pulls out, there’s a domino effect on the other lenders and it can snowball rapidly which is why we are seeing lenders dip their toes in the water and then withdraw.’

- Advertisement -
- Advertisement -

Stay Connected

16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe

Must Read

Britons flooded back from France in a bid to beat the quarantine deadline

Families made a last-minute dash across the Channel from France last night in a desperate bid to make it home before the government's 14-day quarantine...
- Advertisement -

Builder sparks security alert by leaving top secret designs for Parliament at GREGGS

A builder sparked a security alert by leaving top secret designs for Parliament at a Greggs in Westminster Tube station.A member of staff at...

Spring will be a ‘new dawn’ for Britain, says deputy chief medical officer

One of the Government's chief advisers on the Covid-19 crisis has said spring could be a 'new dawn' for Britain and its battle with...

Infuriating brainteaser challenges you to find the jellyfish among the sea of plastic bags

A baffling new brainteaser is challenging eagle-eyed quiz aficionados to find the lone jellyfish lurking among a sea of plastic bags.The scene, put together...

Related News

Britons flooded back from France in a bid to beat the quarantine deadline

Families made a last-minute dash across the Channel from France last night in a desperate bid to make it home before the government's 14-day quarantine...

Builder sparks security alert by leaving top secret designs for Parliament at GREGGS

A builder sparked a security alert by leaving top secret designs for Parliament at a Greggs in Westminster Tube station.A member of staff at...

Spring will be a ‘new dawn’ for Britain, says deputy chief medical officer

One of the Government's chief advisers on the Covid-19 crisis has said spring could be a 'new dawn' for Britain and its battle with...

Infuriating brainteaser challenges you to find the jellyfish among the sea of plastic bags

A baffling new brainteaser is challenging eagle-eyed quiz aficionados to find the lone jellyfish lurking among a sea of plastic bags.The scene, put together...

Changes to COVID-19 restrictions in Australian schools revealed – no choir, recorders or prom

Health authorities are reportedly considering halting choirs, the use of woodwind instruments and dances to stem the spread of coronavirus in schools. Coronavirus restrictions in...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here