HSBC for Intermediaries has lowered its already impressively-priced two-year tracker rate by 0.05% to 1.19%. It is available for mortgages between £10,000 and £5-million.
The mortgage tracks the Bank of England base rate plus a margin of 0.69% 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 3.53% APRC representative.
HSBC’s 1.19% rate has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. The bank provides a free property valuation.
Aaron Strutt, product director at Trinity Financial, says: “HSBC made a host of changes last week lowering its tracker rates but increasing some of its fixes by up to 0.25%.
“This mortgage does not have any early repayment charges so borrowers can lock into a fixed rate when the Bank of England base rate finally starts to rise. They can also repay the loan at any time.”
Representative example: A mortgage of £750,000 payable over 25 years, initially on a tracker rate for two years at 1.19% and then on a variable rate of 3.94% for the remaining 23 years, would require 24 monthly repayments of £2,891.52 followed by 276 monthly repayments of £3,848.72. The total amount repayable would be £1,132,867.20 made up of the loan amount, plus interest (£381,643.20) and fees of £999. The overall cost for comparison is 3.53% 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