HSBC is extending its low rate, low fee lifetime tracker mortgage from its original two week offer period due to “exceptional demand”.
The lifetime tracker is available at 1.69% over the Bank of England base rate, could be withdrawn at anytime, but will definitely be removed from sale by September 5 2010.
The bank says the first two weeks of August are the busiest of the year with enquiries increasing by over 250%.
It claims to approve four out of every five customers who apply for a mortgage.
Latest Council of Mortgage Lenders data shows that more than half of new mortgage sales are still variable rate mortgages, even though it’s highly unlikely interest rates will fall any further.
The deal is only available at 60% LTV with a £99 fee and no maximum loan size.
Martijn van der Heijden, head of mortgages at HSBC, says: “We have extended the offer to enable as many customers as possible to get it. The low costs together with no tie-ins has proved a real winner, borrowers can take advantage of the low rate now and once base rates start to rise, switch into a fixed rate with no exit or redemption charges.”