With borrowers increasingly on the hunt for fixed rates when it comes to mortgage payments, HSBC has responded by launching its lowest ever two, five, seven and ten year fixed rate mortgages. A fixed rate mortgage provides the security of pre-agreed mortgage repayments until an agreed date – no matter what happens to interest rates – making them a popular option for many buyers in these uncertain economic times.

A range of mortgage options

All these rates are fee fee-free for current HSBC account holders or have a £599 booking fee for non-current account holders. The new rates, available now, are open to homebuyers who can provide a 40% deposit, together with a £1999 booking fee. At the end of the fixed rate period, borrowers can either apply for another fixed rate or tracker mortgage, or revert to a variable rate. The rates available include:

• A 2-year fixed rate at 1.79%
• A 5-year fixed rate at 2.78%
• A 7-year fixed rate at 3.49%
• A 10-year fixed rate at 3.99%

Lower rates from a 10% deposit

For those who can’t stretch to such a high deposit, HSBC is also offering competitive mortgage deals. Customers who have a 10% deposit can also benefit from lower rates, such as a 2-year fixed rate at 4.15%, a 5-year fixed rate at 4.65%, or a lifetime tracker at 4.39%. HSBC is also launching its lowest ever two year discount rate at 60% LTV, offering 1.75% with a £1,999 fee. Peter Dockar, HSBC Head of Mortgages, stated that HSBC will “continue to support our customers by offering them competitive rates to help fund their property aspirations.”