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HSBC launches new best in class mortgage fixed at 0.99% for two years

21st June 2016 Print

HSBC has launched a market leading mortgage rate fixed at 0.99% for two years. The product has a £1,499 product fee, is available for purchases and remortgages up to 65% LTV and customers can overpay up to 10% of mortgage balance per year without incurring Early Repayment Charges (ERCs).

Tracie Pearce, HSBC's Head of Mortgages in the UK, said: ‘’We are constantly looking at ways in which we can deliver value to our mortgage customers and from time to time we have the opportunity to launch a rate with a difference. 

“The new 0.99% two year fixed rate is not only the best in category, it is available for both purchases and remortgages up to 65% LTV and through branches, over the telephone, online or through our selected intermediary partners.

“So, for customers purchasing a new home, coming to an end of a fixed rate deal or already on a Standard Variable Rate, this is an ideal opportunity to take advantage of a great value product with the security of knowing that payments will not increase over the next two years.”

Rachel Springall, Finance Expert at, which has given this mortgage an ‘Outstanding’ rating, said: “This new 0.99% two-year fixed deal from HSBC enters the market as lowest fixed rate available and the first sub-1% fixed deal since records began.” 

“This offering is likely to attract borrowers who have a 35% deposit or equity in their home and are looking for a low rate with a well-known brand. As with any deal, applicants should always work out the true cost of the mortgage to decide whether it’s right for them.” 

“Borrowers would be wise to take advantage of the option to overpay their mortgage whilst interest rates remain so low, this way they can increase the amount of equity in their home and reduce the term of the loan.”

HSBC recently increased the number of brokers who have access to its mortgages to five: Countrywide, London & Country, Springtide Capital, Alexander Hall SPF Private Clients. 

The features of the 2 year fixed rate mortgage are:

- Interest rate: 0.99%

- Product fee: £1,499

- Loan To Value: 65%

- Overpayments: Yes, up to a maximum of 10% of the mortgage balance per annum.

- Maximum loan: Up to £500,000