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HSBC launches 0.89 per cent mortgage deal
HSBC has reduced rates across its residential mortgage range, resulting in its lowest ever fixed rate product priced at 0.89 per cent.
This rate is offered at 60 per cent loan to value (LTV) for a two-year fix with a £999 fee. The maximum loan size is £5m.
This is a rate reduction of five basis points (bps).
The three and five-year fixed alternatives both have a rate of 0.99 per cent, down from 1.09 per cent. For premium borrowers, the five-year fixed product at 60 per cent LTV with a £1,499 fee has a rate of 0.96 per cent.
Rate reductions for new borrowers have been made up to 80 per cent LTV, while products for existing customers have been cut up to 90 per cent LTV.
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This includes the two-year fixed 85 per cent LTV mortgage, which is priced at 1.89 per cent with a £999 fee and 2.14 per cent with no fee. These represent rate cuts of 0.10 per cent and 0.15 per cent respectively.
For a five-year fixed rate mortgage, a fee-free product at 85 per cent LTV is set to 2.59 per cent while the £999 fee paying product has a rate of 2.29 per cent.
At 90 per cent LTV, the fee-free two-year fixed product has a rate of 2.49 per cent, and the £999 fee paying option has a rate of 2.29 per cent.
Across five-year fixes, the 90 per cent LTV alternatives are priced at 3.09 with no fee and 2.79 per cent with a £999 fee.
Changes are effective from today.