HSBC are now offering a five-year fixed rate mortgage that offers homeowners a rate of 1.99%. This represents the lowest ever offered rate.
The new deal that HSBC are rolling out will offer customers a £150,000 25-year mortgage. This means that customers on this deal will save themselves around £14,500 in the first five years of their repayments, in comparison to the 4.99% fixed rate deals that were often found before the global financial crisis.
Tracie Pearce is the Head of Mortgages at HSBC, she stated that:
ìWe are committed to helping customers take their first step onto, or move up, the property ladder. With mortgage rates lower than theyíve ever been before, weíre proud to introduce the lowest ever five year fixed rate. Weíre also offering £1,000 cash back to homebuyers and have refreshed our mortgage range to ensure that homeowners with a smaller deposit have access to our historically low mortgage rates.î
This deal is a great indicator of the current trend in the mortgage market. Rates have plummeted in the last year, meaning that customers are now being offered the lowest rates they will have ever seen.
David Hollingworth from London & Country mortgage brokers said:
ìHSBC has broken quite a significant boundary by launching a rate below 2%. It looks exceptional value and shows just how hard lenders are prepared to fight for new business.î
These falling prices have come about as a result of the fact that the Bank of England is not expected to raise interest rates until around 2016. Initially market analysts had expected the first rises in interest rates to be brought in at around the end of last year – starting at around 0.5%.
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