HSBC lowers rates and fees on fixed rate mortgages

From 31st July 2008 HSBC will be passing on the benefits of lower funding costs to customers by lowering the rates and fees on its fixed rate mortgages.

Standard two year fixed rate mortgages will fall 0.31 per cent, together with the booking fee falling from £799 to £599. Longer fixed rate loans will fall by 0.16 per cent and with associated booking fees falling to £599 also.

A special 5.98 per cent five year fixed rate mortgage will be introduced, available to all customers with an HSBC Plus or Premier account with a booking fee of £999. Customers can upgrade to HSBC Plus for £12.95 per month.

HSBC will continue to offer its market leading discount and tracker mortgages with rates as low as 4.99 per cent for two years.

Andy Mielczarek, head of lending at HSBC commented, "With an estimated 750,000 people looking to remortgage in the second half of 2008, we are doing all we can to keep the cost of borrowing down. Lowering our rates by 0.31 per cent means a saving of almost £500 a year for a homeowner with a £160,000 loan."

For more information, visit hsbc.co.uk