HSBC for Intermediaries has reduced the price of many of its fixed-rate mortgages available for property purchases and remortgages.
The bank’s cheapest fixed rate has been lowered from 1.24% to 1.19% and it is available for mortgages up to £5 million. Applicants will need a 40% deposit to qualify and after the fixed-rate period, the mortgage reverts to the 3.54% standard variable rate. The APRC is 3.2%.
HSBC UK head of buying a home Michelle Andrews was quoted as saying: “While the purchase of properties has understandably slowed, time marches on for those who are on a fixed-rate deal.
“Many homeowners will have taken out their mortgage or remortgaged in the Springtime and their deal is now up for renewal, or they risk moving onto a higher standard variable rate mortgage.”
HSBC has one of the most competitively priced five-year fixes and it is just 0.25% more expensive than its two-year fix. Applicants will still need a 40% deposit to qualify and the maximum loan size is also £5 million.
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Applicants will need a deposit of at least 10% to qualify for an HSBC mortgage at the moment.
The bank previously offered 5% deposit mortgages but had to temporarily remove them while valuers are unable to visit properties.
While property valuers are unable to visit properties HSBC is relying on its automated desktop valuation system to work out how much homes are worth.
Houses with a value of over £2 million are likely to require a physical valuation so while applications can be pre-agreed, borrowers will have to wait for their property to be inspected before the mortgage can complete.
Trinity Financial's brokers have access to lenders will larger automated property valuation limits.