HSBC offering 1.29% rate to target larger mortgage loans
HSBC for Intermediaries is offering an impressively low 1.29% fixed rate mortgage.
At the end of the fixed period, which expires on the 31 March 2019, the mortgage reverts to the bank’s 3.69% standard variable rate. The overall cost for comparison is 3.35% APRC representative.
The 1.29% rate has a £999 arrangement fee and early repayment charges until 31 March 2019. Applicants will need a 40% deposit to qualify. It is available for clients looking to borrow between £25,000 and £5 million.
Aaron Strutt, product director at Trinity Financial, says: “More of the lenders are offering larger mortgage loans and rates can be very competitively priced.
“HSBC recently increased this rate by 0.2% and pulled one of the lowest ever fixed rates. The bank has been particularly busy as it has started working with more mortgage brokers across the UK.”
The mortgage is available on an interest-only or capital repayment basis and HSBC Premier/Advance customers will be charged marginally lower arrangement fees. To qualify for interest-only, clients will need to meet some specific criteria.
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 31/03/2019 at 1.29% and then on a variable rate of 3.69% for the remaining 23 years, would require 26 monthly repayments of £975.36 followed by 274 monthly repayments of £1,250.79. The total amount repayable would be £368,075.82 made up of the loan amount, plus interest (£118,075.85) and fees of £999. The overall cost for comparison is 3.35% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a larger mortgage loan, call Trinity 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.
