HSBC five-year fixed rate mortgage at 1.69%
HSBC for Intermediaries has reignited the mortgage price war by launching a longer term 1.69% fixed rate mortgage.
At the end of the fixed period, which expires on the 30 September 2022, the mortgage reverts to the bank’s 3.69% standard variable rate. The overall cost for comparison is 2.96% APRC representative.
The 1.69% rate has a £999 arrangement fee and early repayment charges until 30 September 2018. Applicants will need a 40% deposit to qualify, and the rate is avilable for mortgages between £10,000 and £5 million.
Aaron Strutt, product director at Trinity Financial, says: “The lenders are pushing to attract new borrowers and they are offering large mortgage loans at super-low rates.
“Many borrowers are locking into five-year fixes because they provide payment security. Although, HSBC’s lowest two-year tracker rates are actually 0.60% cheaper than this five-year fix and it has the same maximum loan size.”
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 30/09/2022 at 1.69% and then on a variable rate of 3.69% for the remaining 20 years, would require 63 monthly repayments of £1,022.31 followed by 237 monthly repayments of £1,224.61. The total amount repayable would be £355,993.10 made up of the loan amount, plus interest (£104,638.10) and fees of £999. The overall cost for comparison is 2.96% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a mortgage through HSBC call Trinity Financial on 020 7016 0790.
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