HSBC announces new five year fixed rate mortgage

Following the increase in base rate to 5.25% this week, HSBC is launching a new five year fixed rate mortgage at 5.55%, with no booking fee.

The HSBC Green Sale mortgage is now sold-out, as of midday 12 January.

Rob Chesters, head of mortgages at HSBC said: “Our Green Sale mortgage proved to be very popular with the many homeowners spring cleaning their finances this January, selling-out in the first two weeks of the Sale.

Following the recent increase in interest rates, we are pleased to be able to announce immediately our new five-year fixed rate mortgage, which comes with a very competitive rate and no booking fee.

As always, we advise any borrower looking to lock into a fixed rate deal to be careful to check behind the headline rate for hidden fees, charges and extended tie-ins. Exit fees and high arrangement fees charged by some lenders can wipe out the savings made by re-mortgaging so it’s vital to know all the costs associated with your new mortgage before switching.”

The HSBC five-year fixed rate mortgage

No booking fee
No higher lending charge or exit fee
Available to both new and existing customers
Free transfer package available for borrowers switching from another lender
Overpayments of up to 20% per month without penalty
Fixed rate of 5.55% until March 2012 then reverts to HSBC variable rate currently 6.25%
Interest charged daily – the fairest method