Britain’s biggest bank HSBC have unveiled a mortgage that charges just 1.99 per cent interest, in a move expected to trigger a price war among lenders, the Daily Mail reports.

The HSBC deal is the cheapest new mortgage currently available and suggests lenders are responding to complaints that they have failed to pass on cuts in the cost of borrowing to customers.

However, applicants will need a perfect credit history while the two-year deal is linked to HSBC’s Standard Variable Rate (SVR), which currently stands at 3.94 per cent. The discounted rate will therefore increase should the HSBC SVR do so and it reverts to the SVR once the initial two-year period has ended.

Also, the discount rate remains out of the reach of many first-time buyers, since it is restricted to loans worth 60 per cent of the property’s value, and comes with a £1,119 arrangement fee.

Similar Posts:

• Nationwide offer 125% mortgage
• Income tax “must rise by 7 per cent to pay back Britain’s debts”
• HSBC cut 1,700 jobs in the UK
• Jobless rate climbs to 2.46 million
• HSBC lost details of thousands of customers

(No Ratings Yet)

 Loading ...