HSBC offering 1.74% five-year fix mortgage **This rate has been withdrawn

by Aaron Strutt

Mar 14 2018

Please note this rate has been withdrawn.

HSBC for Intermediaries is undercutting many of its competitors by offering one of the leading five-year fixed rate mortgages.

Priced at 1.74% the rate is fixed until the 31 May 2023. After the fixed period, it will revert to the lender's variable rate of 3.94%. The overall cost for comparison is 3.14% APRC representative.

There is a £999 arrangement fee and applicants will need a 40% deposit to qualify. Early repayment charges apply for the fixed rate period and the maximum loan size is £5 million+.

HSBC will pay for the property valuation and legal fees if you remortgage to the bank. It also provides interest-only mortgages to those with a valid repayment vehicle and a minimum annual income of at least £100,000.

Aaron Strutt, product director at Trinity Financial, says: “If you are one of HSBC’s Premier Customers the five-year fixed rate is lowered by 0.03% although the arrangement fee increases to £1,499.

“There is still a wide range of lenders offering sub-2% five-year fixed rates even though the Bank of England base rate increased recently. The low rates have tempted many borrowers to lock into fixed rates as they look for longer-term payment security.”

Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate for five years at 1.74% and then on a variable rate of 3.94% for the remaining 23 years, would require 61 monthly repayments of £1,028.28 followed by 239 monthly repayments of £1,254.72. The total amount repayable would be £363,632.16 made up of the loan amount, plus interest (£112,603.16) and fees of £999. The overall cost for comparison is 3.14% APRC representative.

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

To secure a five-year fixed rate mortgage call Trinity Financial on 020 7016 0790