HSBC undercuts market with 3.99% five-year fix remortgage rate
HSBC for Intermediaries has made a positive change by launching a sub-4% five-year fixed-rate mortgage.
The 3.99% rate is available for remortgages and is fixed until 30 June 2028. Applicants will need a 40% deposit to qualify, and the maximum loan size is £5 million.
After the fixed period, the mortgage reverts to the lender's current 6.79% standard variable rate, and there is a £999 arrangement fee. The rate is marginally cheaper at 3.96% if you are an HSBC premier customer.
Aaron Strutt, product director at Trinity Financial, says: "Rates are still high compared to where they were, but this is another step in the right direction, even if the product is limited to remortgaging customers at the moment. A sub-4% fix that undercuts the Bank of England base rate looked a long way off a few months ago.
Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis until 30 June 2028 at 3.99% and then on the bank's standard variable rate currently 6.79% for the remaining 25 years, 3.99% would require 63 monthly repayments of £2,382.21 followed by 297 payments of £3,127.59. The total amount repayable would be £1,078,973.46 made up of the loan amount, plus interest (£582,837.20 and £999 (product fee), £0 (final repayment charge), £35 (completion fee). The overall cost for comparison is 5.8% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
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.
