HSBC has launched the mortgage market’s lowest-ever five-year fixed rate at 1.99 per cent.
It is available to 60 per cent LTV and has a £1,499 fee. Moneyfacts has confirmed it is the first ever five-year fixed rate below 2 per cent.
The lender has also launched a 1.24 per cent two-year fixed rate, which is also available to 60 per cent LTV and has a £1,499 fee.
HSBC head of mortgages Tracie Pearce says: “With mortgage rates lower than they’ve ever been before, we’re proud to introduce the lowest ever five year fixed rate. We’re also offering £1,000 cash back to homebuyers and have refreshed our mortgage range to ensure that homeowners with a smaller deposit have access to our historically low mortgage rates.”
Trinity Financial product and communications manager Aaron Strutt says: “A five-year fixed rate below 2 per cent not only offers borrowers fantastic value for money but it also reignites the price war. A few months ago some of the lenders were expecting rates to rise, but this seems a long way off at the moment.
“HSBC has launched stand out best buys in the past and other lenders have acted quickly to improve their mortgages. It wouldn’t surprise me if five-year fixes got even cheaper on the back of this launch.”