HSBC tempting borrowers with 1.31% fixed rate available for mortgages up to £5-million

by Aaron Strutt

Aug 25 2019

HSBC for Intermediaries is offering some of the most competitively priced two and five-year fixed-rate mortgages across the market.

The bank’s lowest rate is a 1.31% fixed rate until 31 October 2021. Once the rate expires it reverts to the lender’s 4.19% standard variable rate. The overall cost for comparison is 3.79% APRC representative. The mortgage is for premier customers but only 0.03% for non-premier. 

Aaron Strutt, product director at Trinity Financial, says: “If you are looking for a cheap fixed-rate mortgage there is a huge amount of choice at the moment. HSBC recently lowered the price of its two, three- and five-year deals.

“HSBC’s maximum loan size is £5 million and there is a contribution to costs when you remortgage to the bank. The lender’s five-year fix is 0.4% mortgage expensive than the two-year fix.”

The 1.31% rate has early repayment charges until 31 October 2021 and a £1,499 arrangement fee. Applicants will need a 40% deposit to qualify.

Contacts at HSBC

Trinity Financial has access to a dedicated business development manager at HSBC covering central London and she helps us to ensure mortgages are agreed quickly and efficiently.

Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 31/10/2021 at 1.31% and then on a variable rate of 4.19% for the remaining 23 years, would require 25 monthly repayments of £977.68 followed by 275 monthly repayments of £1,314.72. The total amount repayable would be £387,814 made up of the loan amount, plus interest (£135,990) and fees of £1,499. The overall cost for comparison is 3.79% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

To secure a fixed-rate mortgage call Trinity Financial on 020 7016 0790 or book a consultation