HSBC Mortgage Rates today
GETTYHSBC has launched a record low mortgage rate
HSBC has launched the 0.99 per cent two-year loan to buyers or owners looking to remortgage with equity of at least 35 per cent.
The bank is among a spate of providers to chop costs in recent weeks, as a Bank of England rate rise looks to be firmly off the agenda in the near future.
Homeowners have been now urged to check if they can cut their mortgage bills down to size with a better deal.
HSBC's latest offering would give monthly repayments of just £565 on a £150, 000 loan, and customers can also overpay by up to 10 per cent a year.
Related articlesHome owners should check if they can remortgage to a cheaper deal
Tracie Pearce, HSBC's head of mortgages in the UK, said: ‘’For customers purchasing a new home, coming to an end of a fixed rate deal or already on a Standard Variable Rate, this is an ideal opportunity to take advantage of a great value product with the security of knowing that payments will not increase over the next two years.”
However, the product comes with a large fee of £1, 499, meaning it could be cheaper over the two year term to opt for a loan with a slightly higher rate but lower fee.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: "As with any deal, applicants should always work out the true cost of the mortgage to decide whether it’s right for them.
“Borrowers would be wise to take advantage of the option to overpay their mortgage whilst interest rates remain so low, this way they can increase the amount of equity in their home and reduce the term of the loan.”