Lowest ever 5-year fixed rate hits market

Published: 16/07/2012

HSBC has just launched the lowest ever five-year fixed rate mortgage at 2.99 per cent.

Unsurprisingly the record breaking low rate comes with a couple of provisos including a 40 per cent deposit or equity and therefore will not help the millions of homebuyers hindered by hefty deposits.

The high street lender is also offering the slightly unusual 7-year fixed rate at 3.99 per cent. Both rates come with a £1499 booking fee.

Peter Dockar is the Head of Mortgages at HSBC:

“Every borrower has different needs from their mortgage. We recognise that many are looking for certainty with their mortgage over the longer term and have launched these products to meet that demand.

“This is the lowest ever five year fixed rate to come to the market and with the security of our retail deposit funding we are committed to offering competitive rates to benefit our customers with what is for many, their largest monthly commitment.”

HSBC has also extended its discount and tracker product range:

Product Loan-to-Value (LTV) Rate Fee
2-year discount 60 per cent 2.49 per cent £499
Lifetime tracker 60 per cent 2.99 per cent Fee free
2-year discount 90 per cent 3.84 per cent £499
Lifetime tracker 90 per cent 4.79 per cent Fee free

Content correct at time of publication

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