HSBC 1.99% mortgage creates a stir

Wednesday, 16 September 2009 12:00

HSBC has reported a surge of interest since it launched its 1.99 per cent mortgage earlier this month.

The creation of the discounted variable mortgage has seen online traffic double to HSBC's internet mortgage area and call volumes increase by 78 per cent compared to the previous two months.

The news has prompted Martin van der Heijden, head of mortgages at HSBC, to hit back at criticism the rate would only be available to a few customers.

He said: "Although there has been some unfounded speculation the deal would be reserved for a minority, in reality well over half the UK's 11.5 million mortgage holders qualify for the deal and HSBC continues to accept more than seven in ten applicants."

The rate is available on the lender's two-year discount mortgages for customers who wish to borrow up to 60 per cent of the property's value.

Rates of 2.49 per cent and 3.89 per cent are available for loan-to-values (LTVs) of 75 per cent and 90 per cent respectively.

A fee of £1,199 is charged for customers taking out any of these discount mortgages.

• Tags:
• products and companies