HSBC HomeStart mortgage aims to be cheaper alternative

The HSBC HomeStart mortgage is a cheaper alternative for those in financial upheaval, the bank has said.

Aimed at first-time buyers and those buying after a separation from their partner, the HSBC HomeStart mortgage allows payments to be made on an interest-only basis for the first three years.

The cheaper initial scheme should help out those in financial upheaval, HSBC has said.

Carina Kemp, HSBC head of mortgages, explained: "Whether you are (a) borrower that is starting over or for the first time, HSBC's HomeStart mortgage is designed to keep initial payments to a minimum."

The mortgage repayments revert to capital and interest for the remaining period of the HSBC HomeStart mortgage.

Borrowers can opt for the Homebuyer rate of 5.75 per cent, or choose fixed rates at 5.49 per cent for two-, three- and five-year terms.