HSBC launches lowest ever fixed-rate mortgage at 0.94 per cent
HSBC UK has launched a fixed-rate mortgage at 0.94 per cent, its lowest fixed-rate mortgage ever, but the product will only be available to those with a 40 per cent deposit.
The lender will charge a £999 fee to access the mortgage, or alternatively, people can take out a ‘fee-saver’ version with no product fee for a 1.14 per cent rate.
The bank is also offering buyers with a 15 per cent deposit a deal fixed at 1.99 per cent in the next two years with a £999 fee, also with a fee-saver equivalent at 2.29 per cent.
For people with a 10 per cent deposit, HSBC UK is offering a rate of 2.49 per cent fixed for two years, with a £999 fee.
People looking for a five per cent deposit deal under the government-backed mortgage guarantee scheme can also take out a two-year rate at 3.39 per cent with a £999 fee with HSBC UK, or a fee-saver equivalent deal with a rate of 3.59 per cent.
Graham Taylor, managing director at mortgage broker Hudson Rose, said the offering demonstrated “just how competitive the market is”.
“Criteria from HSBC are pretty sensible so, providing applicants have the required equity in the property and are looking for a short-term fix, is it a great opportunity,” he added.
But Shaw Financial Services founder Lewis Shaw was less enthused, adding: “As always, this type of deal is all about generating headlines and press releases rather than about being great for customers.
“This deal will be appropriate for an incredibly small section of people but will generate far more headlines than it warrants.”