HSBC offers 1.99% mortgage
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Other mortgages within its new range include a two-year discount mortgage for customers with at least a 25% deposit at an interest rate of 2.49%.
Both discount mortgages have arrangement fees of £1,199 and are discounted from HSBC standard variable rate - currently 3.94%.
It also has a three-year discount rate at 3.89% and a 90% LTV, available for purchasers only.
As well as a three-year fixed rate mortgage, at 4.19% with a fee of £999 and a maximum LTV of 60%.
Martijn van der Heijden, head of mortgages at HSBC says: “Across the market lenders’ standard variable rates are at an all time low, as a result we are launching our lowest ever mortgage rate – 1.99% - to appeal to remortgaging homeowners. We have also made our higher loan to value mortgages even better value to support the increasing number of home purchasers either move, or step on the housing ladder for the first time.”
HSBC has pledged to double its 2007 level of mortgage lending this year and has made £15bn available to customers. It was the largest net mortgage lender in the UK in the first half of 2009, with £4.2bn in new lending.
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Readers' comments (8)
Ketan Yadav, Avenue & Co Private Finance | 2 Sep 2009 10:14 am
HSBC offers 1.99% mortgage
HSBC are offering the best re-mortgage rates in the UK for 60% LTV and that is because they dont take on risky customers. The aggressive pricing will continue to increase their market share, and they are showing how to successfully distribute mortgages without brokers.
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Peter Jones | 2 Sep 2009 10:47 am
Rip off arrangement fees!!
An attractive rate, but wheres the catch...well that would be the arrangement fee of £1199. They give in one hand and take from the other. Lenders are making a fortune for sorting the paperwork on these deals. How can a lender justify such a high arrangement fee. The fee does not warrant the effort required.
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ajk | 2 Sep 2009 11:03 am
HSBC
Buy your mortgage off the shelf no advice no TCF no risk for lender buyer beware you are not getting advice you are buying a product just like you are buying a sandwich- Thanks FSA so we can forget about mortgage advice and call it buy your mortgage from a Bank -customer is responsible then is he?
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Richard Wilson | 2 Sep 2009 11:25 am
Buyer beware of interst rate hikes
HSBC, along with all the other lenders still continue to attract remortgagers/buyers to the tracker/discount deal. Where will the remortgagees/buyers be when interest rates rise to pay for the collosal 'quantitative easing' required as a result of bankers' incompetence. Of course, the lenders will be sitting pretty.
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Anonymous | 2 Sep 2009 11:43 am
Peter Jones-Arrangement Fees
Peter, the booking fee charges by lenders is not charged for administrative work undertaken, these product fees as well as ERCs and Interest rate form part of the product pricing, and therefore form part of the products profitability. Therefore it obviously makes sense that you can have a lower rate and a higher fee or a lower fee and a higher rate. The justification is that mortgage lending contributes to the company's bottom line and therefore has to be profitable.
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Anonymous | 2 Sep 2009 11:46 am
Think I need a job at HSBC?
With rates that low maybe its worth getting a job at HSBC as a mortgage adviser. Sounds easy - must be like shooting fish in a barrel!
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Mark K | 2 Sep 2009 6:43 pm
Stop moaning!
I cannot think of ANY product or service where customers already have multiple ways of purchasing. So why do brokers continue to moan about the FSA 'allowing' banks to sell products? I am confused. If a customers wants to buy of the shelf, they can. Like you can when buying ANY product or service. Or you can research, seek out reviews, or request (and sometimes pay for) advice. So, if you are a good broker you will offer a value added service. If the product is not available to you, then remember the bank is competing in a marketplace too... and I doubt you were complaining just a few years ago when you had 'broker exclusives' that were better than customers going direct. Get over it and look at ways to make your own business better instead of blaming others.
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Simon Murray | 6 Sep 2009 9:40 am
HSBC offerings
Great if you can get it but like anything there is a catch. If you're buying through an estate agent there will probably be timescales to adhere to. With HSBC the purchaser will have no control over the application process and limited ability to communicate with the lender. Anecdotally some mortgage offers from HSBC are taking three months plus which may mean buyers will lose the property and have paid a harsh price for being rate led.
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