HSBC launches its lowest ever fixed rate
HSBC has cut prices on around 40 fixed-rate mortgages by up to 0.3 per cent, leading to the lender’s lowest ever fixed rate mortgage of 0.94 per cent.
The lender’s previous low had been a two-year fixed rate priced at 0.99 per cent which was capped at 60 per cent loan to value (LTV). It was introduced in June and was the first time in five years that the lender had brought in a sub-one per cent mortgage option.
The latest rate changes include a 0.05 per cent reduction on a two-year fixed rate at 60 per cent LTV, taking the cost down to 0.94 per cent. The rate for its fee-saver equivalent has also been decreased by 0.1 per cent to 1.14 per cent.
The lender’s two-year fixed rate at 85 per cent LTV has been cut by 0.3 per cent to 1.99 per cent, the lowest since 2020. The fee-saver equivalent has been reduced by the same amount to 2.29 per cent.
HSBC’s two-year fixed rate at 90 per cent LTV will now stand at 2.49 per cent, down from 2.79 per cent. The lender says this is the lowest rate for the product since it was re-introduced in January.
Other rate changes include its mortgage guarantee scheme product, which is a two-year fixed rate at 95 per cent LTV. This has been decreased from 3.59 per cent to 3.39 per cent.
The lender’s five-year fixed rate product at 75 per cent LTV has been reduced by 0.2 per cent to 1.20 per cent, whilst its five-year fixed rate at 90 per cent LTV has been cut by 0.25 per cent to 2.99 per cent.
All the non-fee-saver products are subject to a £999 fee.
HSBC UK’s head of buying a home, Michelle Andrews, said: “We have made significant rate cuts across our fixed term mortgages, continuing our support for all buyer types whether they are first-time buyers as they look to take their first step on the property ladder alongside those also looking at moving up the ladder with their next home, or those whose fixed-rate deals are coming to an end and looking for a new deal.”