LONDON, UNITED KINGDOM -- (Marketwire) -- 01/02/13 -- HSBC is marking the start of 2013 with new competitive mortgage rates for customers with a 10% deposit.

The rate changes launched today (2nd Jan) include:

--  90% LTV 2-year-fixed - 4.19% 
--  90% LTV 5-year-fixed - 4.69% 
--  90% LTV tracker - 4.19% above base rate (current rate GBP 4.69%) 

All of HSBC's 90% LTV rates are currently Fee-free(i) for HSBC current account holders or have a GBP 599 booking fee and a valuation fee payable for non-current account holders.

Peter Dockar, HSBC Head of Mortgages, said: 'We worked hard last year to help UK borrowers with the aspiration to own their own home and we will continue to offer competitive rates to both first time buyers and existing homeowners.'

In addition, HSBC continues to offer competitive rates for customers with a larger deposit or equity, including:

--  60% LTV 3-year-fixed - 2.79% with GBP 999 fee 

HSBC will also maintain its lowest ever two-year fixed rate of 1.99%. Borrowers with a 40% deposit or equity can secure the rate for a fee of GBP 1,999, or GBP 1,499 for HSBC current account holders.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: 'HSBC's new deals aimed at first-time buyers provide potential borrowers with competitive rates coupled with a reasonable fee at a high loan-to-value percentage.

'The two-year fixed deal at 4.19% is amongst the top deals in that sector and the five-year fixed deal at 4.69% is the best rate with no fee. These deals are also very competitive for new customers where a reasonable GBP 599 fee applies. It's fantastic to see existing customers rewarded with a fee free option - first-time buyers in particular will welcome any help towards set up costs.'

Notes to Editors

HSBC mortgages are only available directly from HSBC - they are not available from brokers or any other intermediaries.

(i) Fee-free means: No booking fee, no standard valuation fee, no completion fee.

HSBC will cover the cost of one standard valuation where this is required by HSBC as part of the mortgage application. Additionally, where it is a straight forward transfer from another lender, HSBC also pays the standard legal costs.

HSBC Bank plc: HSBC serves 16.1 million customers in the UK and employs approximately 52,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.

The HSBC Group: HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and Africa. With assets of US$2,556bn at 31 December 2011, HSBC is one of the world's largest banking and financial services organisations.