by Mark Johnston
HSBC Cut Mortgage Rates.
It seems that the HSBC is marking the start of 2013 with some new competitive mortgage rates.
Peter Dockar, head of mortgages at the bank, said “we worked hard last year to help UK borrowers with aspirations to own their own home and we will continue to offer competitive rates”.
The new rate changes recently launched by HSBC include some 90 per cent loan to value (LTV) deals such as: a two year fixed rate deal at a rate of 4.19 per cent, a five year fixed deal at a rate of 4.69 per cent and a tracker at a rate of 4.19 per cent above the base rate.
All of the banks 90 per cent loan to value (LTV) rates are currently fee free that is providing borrowers are a HSBC customers, otherwise they come with a £599 fee.
Some mortgage experts fell that the banks new fixed rate deal at 4.19 per cent is amongst the top deals in that particular sector.
Rachel Springhall, finance expert at moneyfacts.co,uk, the UK’s leading provider of personal finance data, added that the “HSBC’s new deals aimed at first time buyers provide potential borrowers with competitive rates coupled with a reasonable fee at a high loan to value percentage”.
HSBC have also maintained the lowest deal in its history, which is a two year fix at 1.99 per cent for 60 per cent loan to value (LTV). The deal does however come with a £1,999 fee, discounted to £1,499 for HSBC current account holders.
It is also worth noting that this particular bank is not part of the funding for lending scheme and therefore they have not given any deadline as to when this particular offer may expire.
The deal is comparable to a 1.99 per cent mortgage offered by Santander’s Abbey Intermediaries which was available for one week only, which has now finished, and came with a £1,494 fee.
An earlier 1.99 per cent deal from Tesco, was launched back in October last year but this too was withdrawn after just one month, that particular deal came with a £995 fee.
Ray Boulger, senior technical manager at John Charcol, said “HSBC’s previous strategy has been to keep deals around for a while. We can therefore expect to see this deal on the market in to the new year”.
Mark Harris, chief executive of mortgage brokers SPF private clients, suggested that “rates are likely to fall further and two year fixes could go as low as 1.5 per cent”.
First Direct, another arm of HSBC, has also launched a new range of low deposit fee free home buyer mortgages, with some aimed at new borrowers.
The new fee free ‘Homebuyer’ range is available at 85 per cent and 90 per cent loan to value (LTV) and helps borrowers keep upfront costs down.
They have decided to offer buyers a simplified choice, therefore all 85 per cent loan to value (LTV) fixed rates have a rate of 4.49 per cent and all 90 per cent loan to value (LTV) fixed rates have a rate of 4.59 per cent.
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