Lenders improving rates as HSBC launches 1.59% five-year fix for mortgages up to £5 million
HSBC for Intermediaries has launched a leading five-year fix undercutting the other mortgages across the market.
The rate is priced at 1.59% and fixed until 31 January 2025. Once the deal expires, it reverts to the lender’s 4.19% standard variable rate. The overall cost for comparison is 3.2% APRC representative.
The mortgage has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan size is £5 million.
Aaron Strutt, product director at Trinity Financial, says: “Over the last few weeks there have been more rate changes than normal and some lenders have improved the price of their mortgages two or three times. The best buy tables are changing on a daily basis as the lenders look to undercut each other and drive down prices.
”If you are looking for the cheapest possible rate then it makes sense to take a two-year fix. However, if you are looking for longer-term payment security to see out the Brexit chaos then you are not alone. According to LMS 50% of borrowers who remortgaged in July took out a five-year fix, up from 46% in June.
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate of 1.59% until 31/01/2025 at 1.59% and then on a variable rate of 4.19% for the remaining 20 years, would require 63 monthly repayments of £1,014.48 followed by 237 monthly repayments of £1,280.72. The total amount repayable would be £367,767.88 made up of the loan amount, plus interest (£116,443.83) and fees of £999. The overall cost for comparison is 3.2% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a mortgage
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.
