HSBC is to offer a 40-year mortgage to home buyers, the first time it has ever launched home loans over that length of time.
Traditionally, mortgage loans have been available for 20 or 25-year periods, but with rates on loans rising, the bank said it wants to attract customers who want lower monthly payments but over a longer period.
Initially available via brokers, the 40-year loans will be available directly from HSBC on 13 September.
Andrew Matson, head of mortgages at HSBC UK, said: “We know that home ownership is a key life ambition for many people, but affordability can be an issue.
“By extending the mortgage term we aim to help make mortgages more manageable with lower monthly repayments and homeownership a reality for our customers.”
Earlier in another sign of some of the pressure easing on homebuyers, Coventry Building Society announced it was cutting rates on its residential range, including most two-year and three-year fixes excluding a 65% loan-to-value (LTV) remortgage rate and 80% LTV purchase rate with no fee.
Coventry BS's buy-to-let rates are also being cut for most of its two and five-year fixes aside from selected fee-free rates.