HSBC launches lowest ever fixed rate mortgage at 0.94%
The two-year fixed rate comes with a fee of £999. The rate for the fee-free ‘Feesaver’ equivalent is 1.14 per cent.
The bank has also cut the rates on its two-year 85 per cent and 90 per cent loan-to-value mortgages. Buyers with a 15 per cent deposit can now get 1.99 per cent, with a £999 fee, or 2.29 per cent with no fee.
Those with a 10 per cent deposit can now get 2.49 per cent for two years, again with a £999 product fee.
Doug Miller, director at adviser firm Lansdown Financial Services, said: “While HSBC’s reputation makes me sceptical about who will actually be classed as eligible, this shows the strength of the market at the moment for consumers as banks appear to be entering a rate war following the end of the Stamp Duty madness.
“While the longer five-year deals are still the more popular choice, and rightly so given the current uncertainty and additional costs and hassle of remortgaging every few years, a sub-1% deal will still be hugely attractive to many and I would fully expect more high street lenders to follow suit in the coming weeks.”