HSBC has announced a new five-year fixed-rate mortgage after the homeowner loan offered in its Green Sale sold out.
Following the decision last week by the Bank of England’s monetary policy committee to raise the national interest rate, those looking for the best loan to suit their circumstances could benefit from the new HSBC offer.
The product has no exit, booking or higher lending fees, with a fixed rate of 5.55 per cent until March 2012.
After this date, it reverts back to HSBC’s variable rate, which is currently 6.25 per cent.
In addition, it does not penalise borrowers if they overpay by up to 20 per cent monthly and interest is charged daily, as the bank says this is “the fairest method”.
Rob Chesters, head of mortgages for the lender, discussed the issues of a fixed-rate mortgage.
“We advise any borrower looking to lock into a fixed-rate deal to be careful to check behind the headline rate for hidden fees, charges and extended tie-ins,” he said.
“It’s vital to know all the costs associated with your new mortgage before switching.”
HSBC offers a number of options for the personal finance consumer, including insurance and current accounts.
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