HSBC undercut competitors with 1.59% five-year fix
HSBC for Intermediaries has undercut virtually all of the other lenders by launching a super-cheap five-year fixed rate mortgage.
The banks latest longer term mortgage is priced at 1.59% and fixed until the 30 September 2022. After the fixed period, it will revert to the lender's standard variable rate of 3.69%. The overall cost for comparison is 2.96% APRC representative.
HSBC’s 1.59% rate has a £999 arrangement fee and applicants will need a 40% deposit to qualify. Early repayment charges apply for the fixed rate period and it is also available for mortgages between £10,000 and £5 million.
Aaron Strutt, product director at Trinity Financial, says: “Many of the lenders have access to incredibly cheap funding so they can still undercut each other to top the best buy tables. If you prefer to have the lowest monthly repayments, then it makes sense to take a two-year fix, but these five-year deals are providing borrowers with great long term payment security.”
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate for five years at 1.59% and then on a variable rate of 3.69% for the remaining 23 years, would require 60 monthly repayments of £1,010.45 followed by 240 monthly repayments of £1,224.44. The total amount repayable would be £356,097.60 made up of the loan amount, plus interest (£104,492.60) and fees of £999. The overall cost for comparison is 2.96% 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.
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