Tuesday, September 04, 2012

HSBC offers lowest-rate mortgage deal in UK

Further increasing competition among UK lenders, HSBC launched a new mortgage at a record low rate to attract customers with deposits of around 10 percent.

HSBC’s latest seven-year fixed-rate loan of just 4.89 percent has a loan-to-value (LTV) of 90 percent and zero fees. This fixed-rate deal is also available for two-, three- and five-year mortgages. The best value rate from HSBC beats Chelsea Building Society’s seven-year fixed-rate mortgage of 5.14 percent.

The lender also unveiled a lifetime tracker loan rate of 4.49 percent for home movers and first-time buyers. This mortgage also comes with zero fees and a 10 percent deposit, but the seven-year fixed-rate deal is the only one with a record low rate.

“While it's great to see some low rates launched specifically aimed at first-time buyers, only the seven year option sits as the market leader at 90 percent loan-to-value,” said Rachel Springall, spokeswoman for consumer portal Moneyfacts.

“Customers will find the fee-free option particularly attractive, especially if they are trying to keep initial costs down,” she added.

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