HSBC launches lowest ever mortgage interest rate

Date:Thursday 3rd September 2009
Author: Susanna Kavka

HSBC has launched its lowest ever discount mortgage interest rate of 1.9 per cent over two years.

Customers will need to pay 40 per cent of their property value as a deposit and an arrangement fee of £1,199 to take advantage of the deal.

Martijn van der Heijden, head of mortgages at the bank, claimed that it is an attempt to entice remortgaging homeowners to save money on their monthly payments.

He said: "Across the market lenders' standard variable rates are at an all time low, as a result we are launching our lowest ever mortgage rate."

The interest rate increases to 2.49 per cent if only 25 per cent of the value of the property is paid, but Mr van der Heijden commented that this is very good value for people thinking about getting onto the property ladder.

In a recent comment by, the comparison site's mortgages channel manager, Hannah-Mercedes Skenfield, said that HSBC is breaking new ground by offering these rates.