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HSBC launches lowest fixed rate ever

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The bank has broken the 1% barrier, with a mortgage fixed at just 0.99% for two years
HSBC launches lowest fixed rate ever

The lowest fixed rate ever has been launched by HSBC – a mortgage locked at 0.99% interest for two years.

The deal is available to homebuyers and remortgagors with at least 35% of the property’s value as a deposit or equity, who want to borrow up to £500,000. Plus it comes with the ability to overpay 10% of the capital debt without penalty.

Independent financial information provider Moneyfacts confirmed the 0.99% fix was the lowest rate offered since it began recording product trends.

The deals are available to borrowers directly from the bank and through a limited number of mortgage advisers.

Tracie Pearce, HSBC’s head of mortgages in the UK, said: ‘”We are constantly looking at ways in which we can deliver value to our mortgage customers and from time to time we have the opportunity to launch a rate with a difference.”

Kevin Mountford, banking expert at MoneySuperMarket, added: “HSBC dropping its two-year fixed mortgage rate to sub one per cent is a big moment for the mortgage market. We’ve never seen rates fall this low before, and HSBC is certainly putting down a marker to other providers. Hopefully this will drum up competition and we’ll see more providers following suit as a result.”

Last week, the Bank of England’s Monetary Policy Committee returned a unanimous vote to hold interest rates at 0.5% for the 88th consecutive month.

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