First-Time Buyers Could Be Heartened By Housing Market

The property market has had its ups and downs in the last couple of years but it seems that it may be turning a corner with some new choices offered to people seeking mortgages.

First-time buyers could be pleased by the assertion that the housing market is set for recovery. A mortgage expert has explained that although the cost of houses has fallen, people with low-equity have not been able to secure a mortgage in the past year.

However, that could be set to change due to a range of 90 per cent loan-to-values (LTVs) being offered by leading high street bank HSBC, which is doubling its budget for mortgage lending.

"We are standing by our customers through thick and thin and these changes mean we can continue to give customers the best possible deal on their mortgage," said a group of general managers at the bank.

He explained that the bank was going to make £1 billion available to house seekers with a ten per cent deposit and also commented that mortgage owners were being more "responsible" with their repayments.

To qualify you will need to have an HSBC Plus account or be a premier customer. In addition, there is a fee of nearly £1500 to pay for the best rates.

However, HSBC has been criticised for the conditions that apply to the new mortgages. Many in the business see them as prohibitive and believe they do not actually help the majority of buyers. If you are thinking of getting a HSBC mortgage you should factor in these extra costs.

The move is good news for first-time buyers as it gives more options than have previously been available and the lower deposit required is one of the prime reasons.

These comments follow research by Lloyds TSB which found that more people are choosing to pay off their mortgages than spend money, which can have the same effect as saving.

If you would like to know more about buying a house why not ask AnswerBank Home and Garden.