HSBC is set to introduce a 40-year mortgage option for homebuyers, marking its first foray into offering home loans for such an extended duration.
While mortgages have conventionally spanned 20 or 25 years, the rising loan rates have prompted the bank to cater to those who prefer smaller monthly payments over a prolonged term.
Starting with brokers, these extended-term loans will become directly accessible from HSBC beginning 13 September.
Andrew Matson, HSBC UK’s mortgage chief, remarked, “Recognizing that owning a home is a paramount aspiration for many, we’re addressing the challenge of affordability. By lengthening the mortgage duration, our aim is to provide more feasible monthly repayments and thus make homeownership achievable for our clientele.”
In a related development signalling relief for homebuyers, Coventry Building Society declared a reduction in rates across its housing line-up, covering most two-year and three-year fixed rates.
This excludes a 65% loan-to-value (LTV) remortgage rate and an 80% LTV purchase rate without any charges. Additionally, rate reductions also apply to most of Coventry BS’s buy-to-let two and five-year fixed plans, barring certain no-fee options.
