HSBC has announced an interest rate cut on its fixed rate mortgages. All their fixed rate, two, three and five year mortgage deals that are fee-free are having their interest rates reduced by 0.56 per cent. If customers are willing to pay a £799 fee on their similar mortgage deals, then they interest rate will be cut by 0.46 per cent more.
The mortgage lender says that these discounts are their way of passing on the benefits of their lower funds costs to their borrowers.
HSBC has also introduced a new 3 year mortgage deal with a fixed rate and a fee of £999 with an interest rate of 5.69 per cent.
Martijn van der Heijden, head of mortgages at HSBC said:
“These rate cuts are the equivalent of a saving of a least £500 a year to an average mortgage holder. [We are] doing all we can to keep the cost of borrowing down.”
In a report from the Banking Times, the mortgage lenders is also considering a relocation of its head office, which is currently in Canary Wharf.
Lower mortgage rates are great news both for those looking for mortgages and those considering doing their CeMAP training.