It’s not often a single product merits its own post, but HSBC has today launched the first ever fixed rate mortgage below 1%.
The new deal is set at just 0.99% until 31st August 2018 – a record low and is guaranteed to grab lots of attention.
As ever though, rate is not all. This product needs at least 35% deposit and comes with a substantial £1,499 fee. That said, with the nearest competitor being 0.15% higher and most “conventional” deals with roughly £1,000 fee coming in at around 1.40% it will look compelling to many.
The fee means it’s best suited to larger mortgages, and as a broad rule of thumb, those with loans under £200,000 may still be better served looking at some of the excellent lower fee options available from many lenders.
It may be a cliche but in one sense at least, borrowers have literally never had it so good.
To see which deals work best for you, try our customisable best buy tables – or of course contact one of our advisers.
When talking about a specific product like this, we are required to give the following
Representative Example A mortgage of £202,395 payable over 23 years, initially on a fixed rate until 31/08/2018 at 0.99% and then on a variable rate of 3.94% for the remaining 21 years would require 26 payments of £819.98 and 250 payments of £1,086.21. The total amount payable would be £294,664 made up of the loan amount plus interest (£90,477) and fees (£1,792). The overall cost for comparison is 3.5% APRC representative
HSBC launches lowest ever fixed rate