HSBC lowers mortgage rates for new customers

HSBC has decreased its rates across its variable rate mortgage and Amanah Home Finance for new customers, according to a statement from the bank. The new plan says that the first-time buyers and new customers with a 25 per cent deposit can take advantage of HSBC's revised rate at 6.75 per cent when purchasing a completed property. HSBC Premier Customers will receive a further reduction on the rate of 0.5 per cent, while HSBC Status customers will receive a reduction of 0.25 per cent. The bank said the current HSBC mortgage customers will have their rates reviewed on April 1, 2010 in line with the bank's commitment to review rates every quarter. Ishrat Kiyani, Head of Premier and Wealth Management, the UAE, HSBC said, "HSBC is very much open for business, and wants to provide more flexibility and choice for customers who are looking to own a home. Price valuations are currently very attractive in the housing market and our new reduced rate will make it easier for end-users to get affordable mortgage finance." Speaking to Emirates Business , Chris Dommett, Chief Executive Officer, John Charcol Middle East, the leading mortgage consultant, said it is encouraging that a major bank is active in the mortgage market, and looking to make mortgages more affordable. "We understand that investor confidence has been low. However, we believe that owning a home continues to be an important decision for residents. With our new rate reduction and a variety of options at competitive prices, we continue to support the UAE housing market as well as what is important to our customers," Kiyani said. HSBC mortgages are available to expatriates and nationals with loan terms of up to 25 years or until the age of 65, whichever occurs earlier. Dommett said the new rate is very competitive compared to those being offered by other banks in the UAE. "It is not Eibor-based, so is set by the bank itself, and presumably would be reviewed on a quarterly basis like their existing loans," he added.