HSBC launches 2.19% tracker
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HSBC has launched a tracker mortgage, which tracks at 1.69% above the Bank of England base rate - currently 2.19% and has a booking fee of £99.
The 2.19% tracker rate is available until August 15 only, to customers with at least 40% equity in their homes.
The bank is also launching its lowest ever long-term fixed mortgage with a five-year deal at 3.95%, also available at 60% LTV, with a booking fee of £599.
Martijn van der Heijden, head of mortgages at HSBC, says: “These new mortgage deals offer the best of both worlds, our lowest ever five-year fixed rate for those customers wanting security, as well as very competitive tracker rates for those preferring flexible payments. Anyone looking to take out our ultra low 2.19% tracker needs to move quickly as it is only guaranteed for two weeks.”
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Readers' comments (11)
Steve Rodley | 3 Aug 2010 2:30 pm
Initially this looks like yet another nail but on the flip side this could start a Rate War with the other lenders!
However, I am not holding my breath!!!!
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Robert Collins | 3 Aug 2010 2:56 pm
HSBC deal;-
Another nail in the coffin for IFAs. There will soon be no room left for any more nails!
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pd | 3 Aug 2010 3:25 pm
For goodness sake stay positive. This organization can not move fast and has lousy service, has lousy income multiples, doesn't like BTL in the background, and very very tight creditn scoring - Lots of reasons for customers not to use them as many will bne wasting their time. Their lending was only up 3% last year and most of that was their existing customers so this rate window dressing isn't working for them! By the way, First Direct are taking 18 days to phone people back enquiring on their rates, and then telling people it will take another 5 weeks. I think we can beat that?!
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Anonymous | 3 Aug 2010 3:27 pm
Don't worry any minute now up will pop a comment saying how we should giving true whole of market advice and charging someone £700 fee for something they could have found on a comparison site.
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Tim | 3 Aug 2010 3:39 pm
It really isn't not another nail in the coffin. HSBC have been doing this for years, nothing's changed.We don't lose much business to them. Their service is poor and their underwriting is harsher than ever. Its not just about being cheapest. the stats bear this out time again - the majority of people want good advice from a trusted broker - The banks still have a bad name & we must keep taking advantage of this by proving our value. Even if you feel you have to use HSBC, help your customer through their online application, charge a fee & arrange their insurances if appropriate. I'm not letting the greedy arrogant bankers get the better of me!
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Ketan Yadav - Avenue & Co Private Finance | 3 Aug 2010 4:25 pm
A great product once again from the market leaders of Direct Mortgages. This price competition will benefit consumers greatly, HSBC posted excellent half year results and they are keen on the right people with around 25-40% equity. We expect further cuts across the board following these announcements.
...and for everyone else - have no fear, there are more alternatives that people know and right now, lender offering higher multiples and also 1 year of accounts to 80% LTV.
Also, offset deal savinsg can eclipse these rates if you go with the right product.
Price competition is excellent for consumers and these aggresive pricing tactics could put some lenders out of business unless they step up to the challenge. The only question is whether to go for a Tracker or Fixed rate! (and a good broker can help clients make that decision).
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Anonymous | 3 Aug 2010 6:59 pm
maybe lenders are just sick of dodgy mortgage deals being submitted via creative mortgage brokers !
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David J | 4 Aug 2010 9:25 am
In response to "Tim" who is obviously a broker. "Their service is poor"/"Its not just about being cheapest." When buying a car, yes. When purchasing a mortgage, price is king. What "services" are worth an extra 1% of you mortgage per year? a phone call to say hi and make me feel loved? Sod that! Just give me the best rate, a direct debit and that's that. FYI - it's those "greedy arrogant bankers" who give you your job!
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Anonymous | 4 Aug 2010 10:39 am
HSBC decline over 80% of their applications. They take Cherry picking to a whole new level. From an initial approval it can take up to eight weeks to instruct a valuer. Not much use if you want to keep a vendor happy...
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Tim | 4 Aug 2010 11:31 am
David J. Well done Sherlock, yes I am a broker. Luckily for me, not all of my clients are financial experts like you with all the time in the world to compare the various "best buy" tables picking out cheap deals then checking the lenders websites for hidden costs, then spending time during their working day enduring the sales patter of a so called "mortgage adviser" at the bank who really just wants to sell you their shoddy over-priced insurance products. I'm also wondering where you get the impression that the mighty HSBC gives me my job??? Have fun at the bank and I wish you both a long a rewarding relationship.
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