HSBC launches record low mortgage interest rate

Date:Thursday 15th January 2009
Author: Susanna Kavka

HSBC mortgage rates have reached their lowest ever level at 2.99 per cent.

The interest rate, which will take effect on February 6th, is available on a Premier two-year discount offer as well as tracker mortgages with a deposit of 25 per cent.

When the new rate comes into effect, HSBC's standard variable rate will be reduced to 3.94 per cent, also a record low, for Premier borrowers.

Other rates for new tracker mortgage products begin at 4.09 per cent for loans-to-value (LTV) of up to 75 per cent.

Martijn van der Heijden, HSBC's head of mortgages, said the bank intends to double its 2007 mortgage lending level to £15 billion in 2009.

Another lender to alter its products following the base rate cut is The Mortgage Works.

A two-year fixed-rate deal for a buy-to-let borrower is available for an LTV of up to 60 per cent, with an initial rate of 4.69 per cent and a 2.5 per cent fee, which would be £595 at the least.

For five-year deals, a remortgage product has had its rate cut to 5.78 per cent while a buy-to-let mortgage begins a 5.68 per cent.