HSBC launches 3.98% five-year fix mortgage exclusively for higher earners
HSBC for Intermediaries has launched two sub-4% residential mortgage rates for higher earners purchasing or remortgaging a property.
The high street bank offers a 3.98% five-year fix for borrowers purchasing a property when they have a 40% deposit - there is a £999 arrangement fee. HSBC's remortgage five-year fix 0.01% higher and it also has a £999 setup fee. The minimum loan size is £10,000 and the maximum loan size is £2 million. Applicants will need to open a premier account or have an existing premier account to qualify.
Trinity Financial product and communications director Aaron Strutt says: “Just when we thought it was all over for sub-4% fixes for a while HSBC has undercut its competitors with a 3.98% five-year fix.
“While the rate is really good, it is not going to be as widely available to borrowers because of the high minimum income qualification requirement. To qualify as a premier customer, applicants must have an annual income of at least £100,000 and pay it into an HSBC Premier Bank Account. Or have savings or investments of at least £100,000 with HSBC in the UK.
“The good news is that HSBC’s move shows the lenders can still offer really cheap mortgages despite the ongoing uncertainty driven by inflation and mixed messaging about the number of base rate cuts we will get this year.”
Santander pushed its five-year 3.99% rate last week by 0.07% last week due to rising funding costs and the popularity of the rate. It is still offering a sub-4% two-year fix.
Barclays for Intermediaries is still offering its sub-4% five-year fix, and there is a selection of lenders offering five-year fixes of around 4.10%.
HSBC representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 3.99% until 31/05/2030 and then on the lender's 6.99% standard variable rate for the remaining 25 years. The 3.99% rate would require 62 monthly repayments of £1,903.47 followed by 298 payments of £2,548.46. The total amount repayable would be £878,767.22 made up of the loan amount, plus interest (£479,693.70) and £999 (product fee), £0 (final repayment charge), £17 (completion fee). The overall cost for comparison is 6% APRC representative.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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