Good news for borrowers after a bit of long-term certainty - HSBC has launched the cheapest ever five-year fixed rate mortgage!
HSBC has launched a five-year fixed rate mortgage with a rate of 2.99% - the lowest rate of any mortgage of this kind.
As a result it has jumped straight to the top of the best buy tables, but be warned - the mortgage requires a hefty 40% deposit for borrowers and carries fees of £1,499.
The next lowest offer around is a 65% loan-to-value (LTV ) mortgage from Yorkshire Bank with a rate of 3.79%. Although the rate isn’t as good on this one, it has no fees for new customers and a £499 charge for those already with the bank.
Most other five-year fixed rate mortgages lie around the 4% mark. Cumberland Building Society’s 60% loan-to-value (LTV) offering for example, is set at 3.84% with fees of £699 while Monmouth Building Society’s 80% LTV deal is set at 3.99% with a £195 fee.
HSBC has also bought out a seven-year mortgage with its lowest ever rate of 3.99%, and the same booking fee. While this is also a market-leader, it doesn’t beat the historical record as there has been a rate of 3.69% on a seven-year deal from the Chelsea Building Society in the past.
