New HSBC mortgages launched

Date:Tuesday 24th February 2009
Author: Susanna Kavka

Two new HSBC mortgage products have been launched, the lender has announced.

Both deals are fixed-rate and last for five and ten years respectively.

The five-year mortgage has a rate of 3.99 per cent and the ten-year deal is at 4.98 per cent.

HSBC head of mortgages Martijn van der Heijden said customers had expressed a desire to make long-term use of the current low rates.

"Base rates don't have much further to fall, so demand for longer term fixed-rate mortgages is increasing," he explained.

Overpayment options are also available for HSBC borrowers on fixed-rates.

They can overpay 20 per cent of the monthly amount without penalty.

In January, HSBC urged its variable-rate mortgage borrowers to make overpayments in order to capitalise on falling interest rates.

At the time, Mr van der Heijden said that this could mean making savings worth thousands of pounds and paying off the loan years more quickly.