The two-year fixed rate from HSBC is the first fixed deal to dip below 1 per cent but analysts say other lenders may follow, leading rates even lower.
HSBC is offering a record low mortgage interest rate of 0.99 per cent, as intense competition makes borrowing cheaper than ever.
HSBC two-year fixed rate is the first fixed deal to dip below 1 per cent but analysts say other lenders may follow, leading rates even lower. The move was part of a package of measures designed to boost lending and stimulate the UK economy after the shock of the Brexit vote.
HSBC’s 0.99 percent rate is only available to those with a 35 percent deposit and only on loans of up to £500,000. Those with less deposit will pay much higher rates. The offer also comes with a £1,499 set-up fee and allows annual overpayments of up to 10 percent a year,
The fall in rates will, at least temporarily help buyers who are facing record high property prices. Property website, Right move, published figures showing that prices were up 4 percent from a year ago, despite fears that they would take a hit from the uncertainty in the run-up to and aftermath of the Brexit vote.
