High street lender HSBC has just launched its lowest fixed rate mortgage to date. It’s a five-year fixed rate loan at just 2.99%. However, interested parties will need a 40% deposit in order to be eligible for the deal.
HSBC is also offering potential buyers the opportunity to apply for its lowest ever seven-year fixed rate mortgage, with an interest rate of 3.99%.
Both mortgage products have a £1,499 booking fee.
Peter Dockar, head of mortgages at HSBC, commented: “Every borrower has different needs from their mortgage. We recognise that many are looking for certainty with their mortgage payments over the longer term and have launched these mortgages to meet that demand.
This is the lowest five-year fixed rate to come to the market, and with the security of our retail deposit funding we are committed to offering competitive rates to benefit our customers with what is for many, their largest monthly commitment.”
HSBC has also just launched a number of other tracker and discount rates, including:
- 60% LTV 2.49% Two Year Discount (1.45% discount off HSBC SVR) - £499 booking fee
- 60% LTV 2.99% Fee-Free Lifetime Tracker (2.49% above Bank of England base rate)
- 90% LTV 3.84% Free-Free Two Year Discount (0.10% discount off HSBC SVR)
- 90% LTV 4.79% Lifetime Tracker (4.29% above Bank of England base rate) - £999 fee
- HSBC’s current SVR is 3.94% and the present Bank of England base rate is 0.5%.
It’s also worth noting that these mortgages are only available through HSBC and not with brokers. To apply, customers should visit hsbc.co.uk, call 0800 169 6333 or visit a branch.
HSBC has been quick to point out that it isn’t just catering for those with the ability to save large deposits. Today (16th July), HSBC revealed that it approved over £10.6bn in mortgages in the first six months of 2012. Some £2.7bn was approved to first time buyers. HSBC claim this helped 23,500 first timers get on the property ladder.
Peter Dockar said: “At a time when many other lenders are contracting their lending, we remain committed to helping more customers who aspire to owe their own home and we approved a record number of mortgages in the first half of this year.
So we can help an increasing number of customers finance their homes, we are extending our mortgage funding pledge by an extra £2bn, meaning HSBC will make at least £17bn available to UK homeowners this year.”