The HSBC has introduced its lowest set of fixed rate mortgage offerings yet. At the start of March, HSBC launched a new range of mortgages that are some of the lowest they have ever offered customers. The rates are for two, five, seven and ten year periods and can be taken advantage of by customers that can afford a 60% LTV and the £1999 booking fee that comes with the offers.
Customers of HSBC can pay as low as 1.79% of the two year fixed mortgage, 2.78% for the five year mortgage, and 3.49% for the seven year offer. For those who want more security, the ten year offer at 3.99% should be a good fit. The lowest discount is for those who can afford a 60% LTV at which point the two year mortgage drops down to 1.75% although the same £1999 banking fee is still attached.
In addition, HSBC has also dropped its interest rates for customers that can only afford a 90% LTV offering a two year fixed at 2.15% and a 4.65% for the five year product. Those who are interested in a lifetime tracker can also take advantage of the 43.9% offer. All of these rates are fee free for customers of HSBC or for non-account holders can be purchased with a £599 fee attached to them.
Managing director of Ample Financial Services, Colin Parkin, stated that the rates are very competitive even though interest rates in general have dropped down. However, Parkin added that these low rates are mostly only going to benefit those who can afford to put down a 40% deposit and that is going to exclude a lot of people from getting in the on the mortgage market. He also pointed out that even 10% can be a large stretch in more expensive real estate markets such as London.