HSBC for Intermediaries is offering an incredibly low 0.99% tracker rate for mortgages between £10,000 and £5 million. It tracks the Bank of England base rate plus a margin of 0.74%.
At the end of the two-year tracker period, the mortgage reverts to the bank’s 3.69% standard variable rate. The overall cost for comparison is 3.31% APRC representative.
HSBC’s 0.99% rate has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. There are no any early repayment charges, so it is possible to lock into a fixed rate when the Bank of England base rate when it finally starts to rise.
Aaron Strutt, product director at Trinity Financial, says: “Any sub-1% mortgage offers incredible value for money especially if you are looking for a larger mortgage loan. It is unusal to see such a low rate available for million-plus loans.
“Trinity’s brokers have access to one of HSBC’s dedicated business development managers, and they are on hand to ensure applications are agreed and go through as smoothly as possible.”
Representative example: A mortgage of £250,000 payable over 25 years, initially on a tracker rate for two years at 0.99% and then on a variable rate of 3.74% for the remaining 23 years, would require 24 monthly repayments of £941.05 followed by 276 monthly repayments of £1,249.41. The total amount repayable would be £369,027.36 made up of the loan amount, plus interest (£117,422.36) and fees of £999. The overall cost for comparison is 3.33% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a low mortgage rate call Trinity Financial on 020 7016 0790.