HSBC launches lowest ever five year fix at 1.99%

HSBC has launched the market’s first five year fix below 2%, the mortgage is available at 60% LTV and has a booking fee of £1,499. HSBC is also launching a two year fix at 1.24%, and continues to offer its two year discount rate at 0.99%. Both are available at 60% LTV with a £1,499 fee.

Tracie Pearce, Head of Mortgages at HSBC: “We are committed to helping customers take their first step onto, or move up, the property ladder.  With mortgage rates lower than they’ve ever been before, we’re proud to introduce the lowest ever five year fixed rate. We’re also offering £1,000 cash back to homebuyers and have refreshed our mortgage range to ensure that homeowners with a smaller deposit have access to our historically low mortgage rates.”

Charlotte Nelson, Moneyfacts: “This 1.99% deal is the first five year fixed rate mortgage to be launched below 2% and is the lowest on record that Moneyfacts.co.uk has seen. This deal is likely to be a popular choice for any borrower with the required 40% deposit, and will make a cost effective option over the longer term.”

HSBC is also reinforcing its commitment to help first time buyers and movers by offering £1,000 cash back with its new Homebuyer Special range. Advance and Premier customers will receive £1,500 cash back. It’s also available on all fixed rates on our 95% LTV Help to Buy range.

The Homebuyer Special range rates are:

80% LTV 3 Year Fixed – 2.99% with £199 fee

85% LTV 3 Year Fixed – 3.29% with £199 fee

90% LTV 3 Year Fixed – 3.89% with £199 fee

Help to Buy range:

95% LTV 2 Year Fixed – 4.39% with £199 fee    

95% LTV 3 Year Fixed – 4.59% with £199 fee        

95% LTV 5 Year Fixed – 4.89% with £199 fee