HSBC fuel mortgage price war
The mortgage price war among lenders intensified yesterday as a bank launched a deal with a record sub-1.5% rate.
The two-year fixed-rate mortgage at 1.49% is available from HSBC – but borrowers need a hefty 40% deposit and a £1,999 fee in order to qualify.
The rate is the lowest for this type of deal that financial website Moneyfacts has on its records, which go back to 2007, before interest rates fell to record lows.
Lenders have been scrambling to slash mortgage rates since the Government launched a flagship scheme one year ago to kickstart the housing market.
The average rate offered across the market on a two-year fixed deal for someone with a 40% deposit or equity has plummeted from 4.47% one year ago to 3.32%, according to Moneyfacts.