HSBC Offers new mortgage rate

Over the past 6 months we’ve seen a huge drop in interest rates but, unfortunately, mortgage rate haven’t seen anything near the same drop. This is compounded by the fact that the lowest rates are only being offered to buyers with a large deposit to play with.

But there’s good news from HSBC. They’ve launched a new range of mortgage deals, including products that allow for loans of up to 90% of a property’s value. Good news all round but in particular for first time buyers and current homeowners who have found it hard to move due to a lack of capital to finance their deposit.

HSBC Mortgage specifics

HSBC is offering a two-year fix at 4.99% that will be available on loans up to 90% of the property’s value. Prior to this, the best deal on the market was 5.99% (90% mortage) being offered by the Yorkshire Bank.

There are a couple of one catches though - firstly, this deal is for home purchases only and is only available to customers with either of the following HSBC products: Plus and Premier Plus current accounts. The second point that may put some potential buyers off this off is the booking fee: £1,499.

If you’re after a cheaper option, you’d do well to look at another HSBC mortgage - 5.49%, fixed for two years. Sure, the rate is hight but you’ll save a hefty fee - this one comes in at £199. which is why it works out to be better value on mortgages below £180,000.