HSBC launches Britain's first fixed-rate mortgage below 1%

Fixed rate mortgages have dipped below 1% for the first time ever as the home loan war intensifies.

As competition among lenders hots up and the cost of borrowing for banks and building societies falls to new lows, HSBC is offering a two-year fixed rate deal at a record low of just 0.99%!

The latest dip is likely to have been driven further by the nations vote to leave the EU as investors seek a haven for their cash.
David Hollingworth, of mortgage brokers London and Country, described the rate as “absolutely ridiculously low … It sets a new benchmark for two-year fixed rates.” He also said that the fee was “big, but not the biggest.”

However, it will come as no surprise that the record-breaking deal is not available to everyone. In fact, people who want to take advantage of the low rate will have to fork out a 35% deposit as well as pay a £1,499 fee. It is also only available to those borrowing no more than £500,000.
A customer borrowing £150,000 from HSBC on the new 0.99% rate over 25 years will be charged a monthly payment of £565, bringing the total cost of the mortgage over the two-year deal period to £15,050 including the product fee.

Up until now, the cheapest fixed rate was a 1.05% two-year deal from Post Office Money back in August 2015, which was available only to borrowers with a 40% deposit and charged a whopping £1,995 fee.
And for those with a smaller deposit?
Halifax and Nationwide Building Society cut their rates for buyers with smaller deposits. Halifax now offers a two-year fixed rate at 80% LTV at 3.44% with a fee of £1,499 and its five-year fix at 90% LTV is at 3.99% with a £999 fee.

Nationwide meanwhile launched a two-year and a three-year fixed rate deal at 95 per cent LTV with the two-year deal starting at 3.89 per cent and the three-year starting at 4.39 per cent, both with a £999 fee. These are both available to existing homeowners as well as first-time buyers.