HSBC offering 4.06% five-year fix for mortgages up to £5 million
HSBC for Intermediaries offers a five-year fixed-rate mortgage priced at just over 4%.
The 4.06% rate is available to borrowers purchasing a property, and it is fixed until 31 August 2028. Applicants will need a 40% deposit to qualify, and the mortgage maximum loan size is £5 million. The rate rises by 0.03% for customers remortgaging to HSBC.
After the fixed period, the mortgage reverts to the lender's current 6.99% standard variable rate, and there is a £999 arrangement fee. The overall cost for comparison is 6% APRC representative.
Aaron Strutt, product director at Trinity Financial, says: "Mortgages have started to creep up again following the latest Bank of England price hike. A rate priced at just over 4%, which undercuts the Bank of England base rate, looks pretty good value for money.
Are HSBC's two-year fixes cheaper than its five-year fixes?
HSBC's two-year fixed rates and two-year trackers are much more expensive than the bank's five-year fixes. Like many other mortgage lenders, HSBC's longer-term rate undercut its short-term mortgages.
Mortgage rates are slightly cheaper for HSBC Premier customers.
Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis until 31 August 2028 at 4.06% and then on the bank's standard variable rate currently 6.99% for the remaining 25 years, 4.06% would require 60 monthly repayments of £2,402 followed by 298 payments of £3,191.07. The total amount repayable would be £1,101,098.04 made up of the loan amount, plus interest (£604,161.04 and £999 (product fee), £0 (final repayment charge), £17 (completion fee). The overall cost for comparison is 6% APRC representative.
The information contained within was correct at the time of publication but is subject to change
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