HSBC targeting larger mortgage loans with 1.24% tracker rate
HSBC for Intermediaries is offering an impressively low 1.24% tracker rate for mortgages between £10,000 and £5 million.
The mortgage tracks the Bank of England base rate plus a margin of 0.74% and it is available for purchases and remortgages.
At the end of the two-year tracker period, the rate reverts to the bank’s 3.94% standard variable rate. The overall cost for comparison is 3.54% APRC representative.
HSBC’s 1.24% rate has a £999 arrangement fee, and applicants will need a 40% deposit to qualify.
Aaron Strutt, product director at Trinity Financial, says: “Over the last few weeks some of the lowest two and five-year fixed rates have increased and they are looking slightly more expensive than some of the short-term trackers.
“As HSBC's tracker rate does not have any early repayment charges, it is possible to lock into a fixed rate when the Bank of England base rate when it finally starts to rise.”
Representative example: A mortgage of £750,000 payable over 25 years, initially on a tracker rate for two years at 1.24% and then on a variable rate of 3.94% for the remaining 23 years, would require 24 monthly repayments of £2,908.77 followed by 276 monthly repayments of £3,850.46. The total amount repayable would be £1,113,864.44 made up of the loan amount, plus interest (£382,537.44) and fees of £999. The overall cost for comparison is 3.54% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a low mortgage rate call Trinity Financial on 020 7016 0790
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
