HSBC for Intermediaries is offering an impressively low 1.24% tracker rate for mortgages between £10,000 and £5 million.
The mortgage tracks the Bank of England base rate plus a margin of 0.74% and it is available for purchases and remortgages.
At the end of the two-year tracker period, the rate reverts to the bank’s 3.94% standard variable rate. The overall cost for comparison is 3.54% APRC representative.
HSBC’s 1.24% rate has a £999 arrangement fee, and applicants will need a 40% deposit to qualify.
Aaron Strutt, product director at Trinity Financial, says: “Over the last few weeks some of the lowest two and five-year fixed rates have increased and they are looking slightly more expensive than some of the short-term trackers.
“As HSBC's tracker rate does not have any early repayment charges, it is possible to lock into a fixed rate when the Bank of England base rate when it finally starts to rise.”
Representative example: A mortgage of £750,000 payable over 25 years, initially on a tracker rate for two years at 1.24% and then on a variable rate of 3.94% for the remaining 23 years, would require 24 monthly repayments of £2,908.77 followed by 276 monthly repayments of £3,850.46. The total amount repayable would be £1,113,864.44 made up of the loan amount, plus interest (£382,537.44) and fees of £999. The overall cost for comparison is 3.54% 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