HSBC offering 1.09% rate to target larger mortgage loans
Please note, this rate has been withdrawn.
HSBC for Intermediaries is offering an incredibly low 1.09% fixed rate mortgage.
At the end of the fixed period, which expires on the 31 December 2018, the mortgage reverts to the bank’s 3.69% standard variable rate. The overall cost for comparison is 3.31% APRC representative.
The 1.09% rate has a £999 arrangement fee and early repayment charges until 31 August 2018. Applicants will need a 40% deposit to qualify, and there is £5 million maximum loan size.
Aaron Strutt, product director at Trinity Financial, says: “More of the lenders are offering larger mortgage loans and they are regularly undercutting each other.
“Even though the upper end of the market has slowed down, there are still lots of borrowers with big mortgages who want to switch to a cheaper deal.
“Barclays has consistently offered great large loans, but it does not get close to HSBC’s new deal. The other high street lenders and private banks will be amazed the bank offers such a cheap rate particularly without the need for assets under management.”
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 31/03/2019 at 1.09% and then on a variable rate of 3.69% for the remaining 23 years, would require 26 monthly repayments of £952.40 followed by 274 monthly repayments of £1,248.34. The total amount repayable would be £368,412.56 made up of the loan amount, plus interest (£116,807.56) and fees of £999. The overall cost for comparison is 3.31% APRC representative.
To secure a mortgage through HSBC, call Trinity Financial on 020 7016 0790.
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