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90% home loan is on way back; Cash point.

Byline: TRICIA PHILLIPS

FIRST-TIME buyers are at last seeing a glimmer of hope with the return of 90% mortgages.

HSBC is launching mortgages with LTVs of up to 90% next week.

However, borrowers must have an HSBC Plus current account, which costs pounds 12.95 per month. People remortgaging are excluded.

"HSBC are fussy, however, and do decline high numbers of applications," says Andy Fallon of Mortgage Monitor. "The good news is that more lenders are now offering 90% deals again, including Halifax, Abbey and Cheltenham & Gloucester."

Existing homeowners may also be tempted to lock into one of the current low fixed rates, some at less than 3%.

But Moneysupermarket.com warns that while those with 40% equity in homes could make big savings remortgaging, even if they have to pay an early redemption charge, anyone with less than 10% equity is better off sticking with a Standard Variable Rate (SVR).

Many SVRs are lower than the leading fixed-rate deals for those needing to borrow 90%.

Use the current low SVR to make overpayments on mortgages and increase your equity. Then you'll have more chance of qualifying for more competitive mortgage deals.
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Title Annotation:Letters
Publication:The Mirror (London, England)
Date:Apr 9, 2009
Words:192
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