In the United Kingdom, ""HSBC"":http://www.hsbc.com/1/2/ is responding to market demand by rolling out the financial institution's lowest-ever two-year fixed rate mortgage. Announcing the new offering, HSBC revealed that borrowers can secure a 1.99 percent fixed rate with a 40 percent deposit or home equity value.[IMAGE]
Explaining the new initiative, HSBC's head of mortgages, Peter Dockar, stated, ""While there remains a low expectation of bank base rate increasing in the near future ... we don't know whether the new Governor will bring a change of heart within the monetary policy committee.[COLUMN_BREAK]
""We have seen increasing numbers of customers seeking the security of a fixed rate and I expect this trend to continue. With the security of our retail deposit funding, HSBC is committed to offering competitive rates to benefit our customers,"" Dockar elaborated.
HSBC launched additional rate changes including a two-year fixed rate of 2.49 percent on loans with a 60 percent loan-to-value (LTV) ratio and a five-year fixed rate of 3.19 percent on loans with a 60 percent LTV, both of which mandate a fee of ├âÔÇÜ├é┬ú599 and ├âÔÇÜ├é┬ú499 respectively. Borrowers seeking a five-year mortgage that requires no up front fee can do so at a fixed rate of 3.39 percent.
The company went on to note that its structure for loans with a 10 percent deposit and 90 percent LTV will remain the same, with a five-year fixed rate of 4.69 percent accompanied by a ├âÔÇÜ├é┬ú899 fee. HSBC will also continue to offer a similar product with a two-year discount at a rate of 3.84 percent and a ├âÔÇÜ├é┬ú999 fee.
""Moneyfacts.co.uk's"":http://moneyfacts.co.uk/ finance expert, Rachel Springall, commented on HSBC's mortgage rates, noting, ""The HSBC 1.99 percent deal has the lowest rate for a two-year fixed mortgage on the market and existing customers will be rewarded with ├âÔÇÜ├é┬ú500 off the booking fee, which is great to see.""