LONDON (CU)_British mortgage borrowers with heft deposits are now being offered some attractive deals as rates reach an all-time low level. Last week, HSBC UK launched a fixed-rate mortgage at 0.94 per cent with a £999 fee. This two-year deal will be offered to borrowers with a deposit of 40 per cent and can be obtained by homebuyers and those hoping to remortgage. The multinational financial service provider said this was the lowest ever mortgage rate it had offered.
Now the price war between lenders has begun to heat up as the Trustee Savings Bank decided to follow suit, offering the same ultra-low rate, with a £995 fee. However, this deal is only available to those who intend to obtain a remortgage.
Apart from the 0.94 per cent deal, HSBC has made several other attractive changes in its mortgage products, particularly for those who do not have a sizeable deposit. It includes a fixed two-year deal at a rate of 1.99 per cent, with a 15 per cent deposit and a £999 fee. The free-saver equivalent of this deal can be obtained at 2.29 per cent. For loan applicants with a 10 per cent deposit, a rate of 2.49 per cent is offered by HSBC UK fixed for two years, with the £999 fee.
On the other hand, customers who do not desire a product fee, but have a hefty deposit of 40 per cent may take out the fee-saver version for a higher rate of 1.14 per cent.
These rates show how keen lenders are to attract borrowers, as they are among the lowest ever offered. The previous best buy was offered by Platform, part of Co-operative Bank, at fixed rate of 0.95 per cent, for a term of two years. This was offered with a £1,499 fee and could be obtained only via mortgage brokers.
