Belfast Telegraph

Thursday 18 September 2014

HSBC low interest rate mortgage explained

Personal finance advice with Paul Gosling

HSBC

Q. HSBC is offering a new, low interest rate, mortgage. What can you tell me about it? Is it for me? RS



A. HSBC has just launched a new mortgage product, with a headline rate of just 1.99%.

But while it looks good news, it is not relevant for most home buyers or home owners. It is only available for new house purchases — not for remortgages. And only people raising 40% of the property value from their own resources are eligible.

The offer from HSBC should come with warnings. Although the headline rate is 1.99%, this is not a fixed rate — but is based on a discount on its standard variable rate. This means that if HSBC raises its SVR, the rate on this mortgage rises too.

The discount only applies for two years, at which time borrowers should look again for the best deal.

The mortgage also comes with an initial £1,199 fee.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Comment

More

Company Profiles

More

Help & Advice

More

People on the move

More