View more on these topics

HSBC borrowers can split their mortgage

HSBC has launched a ’split loan’ mortgage that allows borrowers to fix a proportion of the loan with the remainder on a lifetime tracker rate.

Borrowers can fix either 25%, 50% or 75% of their mortgage, with the rest of the loan tracking the Bank of England base rate at the same rate as the fixed part of the loan.

For customers wanting to fix 25% of their loan up to 70% LTV the initial rate is 2.49%. This goes up to 2.69% for fixing 50% and up to 2.99% for fixing 75% of the loan.

At 80% LTV rates start at 2.99% for fixing 25%, moving to 3.39% to fix 50% and 3.89% for 75%.

The product comes with a £999 booking fee and is available up to a maximum of £500,000.

Aaron Strutt, broker at Trinity Financial Group, says: “The fix and the tracker are the same rate, which is unusual. Other lenders offer split repayment mortgage rates, such as Alliance & Leicester, but they aren’t as competitive as HSBC.”

Andrew Montlake, director at Coreco Group, agrees the rates are eye-catching.

But he says: “Many consumers who go into a HSBC branch might not get any advice on this product, so may walk out with a split that does not suit their circumstances.”

Martijn van der Heijden, head of mortgages at HSBC, says: “It is impossible to predict when interest rates will rise and borrowers are facing the potentially costly dilemma of whether they should fix or take a variable mortgage.

“Our split loan mortgage is an innovative solution for borrowers.”

Recommended

6

Complex prime is not sub-prime

Complex Prime – two words being used much more (again) in recent times and ones which I suspect will be used a lot more moving forward.

DAVID HOLLINGWORTH: WINNER OF BEST ADVISER AWARD
1

L&C scoops gong for best adviser firm

London & Country has been voted best mortgage adviser firm in Unbiased.co.uk’s Media IFA Of The Year Awards. David Hollingworth, mortgage adviser at L&C, also scooped the award for best mortgage adviser. Ray Boulger, senior technical manager at John Charcol, and James Carter, principal of Independent James, won the runners-up accolades. Karen Barrett, chief executive […]

Mortgage deal for Lloyds current account holders

Lloyds TSB is offering its current account customers a 0.2% reduction on mortgage rates if they deposit at least £1,000 a month and take out a new mortgage with it.

Employees care about their health

It’s important employers remember this like an alarm going off in their head. Employees care about their health. And they’re calling on employers to provide them with health benefits. In a survey we conducted, we asked 1,005 UK SME employees to choose the top three employee benefits they would value most:  48% of employees voted […]

Newsletter

News and expert analysis straight to your inbox

Sign up