HSBC has withdrawn its popular Rate Matcher mortgage deal for new customers but has launched three new deals which may appeal to those looking to buy.
The first is a two-year discount mortgage
at 4.99 per cent – which the company claims is the only remaining two-year discount on the market below five per cent. Available from today, the mortgage fee is £2,499 fee, the maximum loan-to-value (LTV) ratio is 80 per cent and there is a £250,000 loan limit.
Customers looking to borrow up to £500,000 can apply for a two-year discount at 5.49 per cent with a £999 fee or 5.69 per cent with a £249 fee. The HSBC remortgage tracker will also be available at 5.79 per cent with a £599 booking fee.
HSBC's head of lending, Andy Mielczarek, said: "Our new discount deals offer substantial discounts on our standard variable rate of 6.25 per cent, which itself is the best on the high street. Variable-rate mortgages are starting to look attractive against fixed-rate deals, which are now carrying higher fees."
The bank is still offering buyers fixed rate mortgage deals
, although its two-year rate has risen by 0.45 per cent to 6.74 per cent with a £799 booking fee. Its three-year, five-year and 10-year fixed-rate mortgages have increased by 0.3 per cent to 6.59 per cent.
Mr Mielczarek continued: "These are uncertain times and a lot of people coming off fixed-rate deals will be looking to lock their repayments in for a few more years. But homebuyers really need to think about whether the peace of mind of a fixed rate is currently worth an effective one per cent increase in overall costs that a high booking fee can represent."
"There have been some claims about banks trying to move customers onto variable rate loans and then manipulating mortgage rates to increase their margins. For our part, HSBC
has an excellent record of passing on falls in the base rate to its home buyer variable rate customers."
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