HSBC for Intermediaries is undercutting many of its competitors by offering one of the competitively priced five-year fixed rate mortgages.
Priced at 1.74% the rate is fixed until the 31 May 2023. After the fixed period, it will revert to the lender's variable rate of 3.94%. The overall cost for comparison is 3.14% APRC representative.
There is a £999 arrangement fee and applicants will need a 40% deposit to qualify. Early repayment charges apply for the fixed rate period and the maximum loan size is £5 million+.
HSBC will pay for the property valuation and legal fees if you remortgage to the bank. It also provides interest-only mortgages to those with a valid repayment vehicle and a minimum annual income of at least £100,000.
Aaron Strutt, product director at Trinity Financial, says: “If you are one of HSBC’s Premier Customers the five-year fixed rate is lowered by 0.03% although the arrangement fee increases to £1,499.
“There is still a wide range of lenders offering sub-2% five-year fixed rates even though the Bank of England base rate increased recently. The low rates have tempted many borrowers to lock into fixed rates as they look for longer-term payment security.”
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate for five years at 1.74% and then on a variable rate of 3.94% for the remaining 23 years, would require 61 monthly repayments of £1,028.28 followed by 239 monthly repayments of £1,254.72. The total amount repayable would be £363,632.16 made up of the loan amount, plus interest (£112,603.16) and fees of £999. The overall cost for comparison is 3.14% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a five-year fixed rate mortgage call Trinity Financial on 020 7016 0790