HSBC unveils 1.99% mortgage

Wednesday, 02 September 2009 12:00

HSBC is offering a two-year mortgage with a discounted rate of 1.99 per cent, it announced today.

The new loan, being hailed at the bank's lowest ever interest rate, is available to customers with a deposit of 40 per cent to put down on their property or for remortgage customers.

It is part of a new range of loans being launched by the lender, which also includes a two-year discount mortgage for customers with a 25 per cent deposit. It comes with a rate of 2.49 per cent.

And there is a three-year fixed-rate mortgage with a rate of 4.19 per cent for customers who want to borrow up to 60 per cent of their property's value.

Martijn van der Heijden, head of mortgages at HSBC, said: "Across the market lenders' standard variable rates are at an all time low, as a result we are launching our lowest ever rate - 1.99 per cent - to appeal to remortgaging homeowners."

Both discount mortgages have arrangement fees of £1,199 and are discounted from the HSBC standard variable rate, which is currently 3.94 per cent.

The three-year fixed-rate mortgage has a fee of £999.

• Tags:
• products and companies