HSBC is also offering its lowest ever seven year fixed rate mortgage at 3.99%. Both products have a £1,499 booking fee.
‘Every borrower has different needs from their mortgage. We recognise that many are looking for certainty with their mortgage payments over the longer term and have launched these products to meet that demand,’ said Peter Dockar, head of mortgages at HSBC.
‘This is the lowest ever five year fixed rate to come to the market and with the security of our retail deposit funding we are committed to offering competitive rates to benefit our customers with what is for many, their largest monthly commitment,’ he added.
HSBC has also launched a range of tracker and discount rates including 60% LTV 2.49% two year discount with a £499 fee; 60% LTV 2.99% fee free lifetime tracker; 90% LTV 3.84% fee free two year d; and 90% LTV 4.79% lifetime tracker with a £999 fee.
David Hollingworth, from the mortgage adviser London & Country, said the deal is clearly outstanding but said it will be out of reach for the majority of people.
‘It will not help first time buyers, who are very unlikely to have a 40% or home owners whose equity in their properties has been eroded by house price falls,’ he explained.
According to the Council of Mortgage lenders a typical first time buyer puts down a 20% deposit on their first home, while a home mover, somebody who is selling one property to buy another, puts down 30%.
Banks and building societies usually charge higher rates for those putting down smaller deposits, than those with large deposits, because they say the risks are higher.
