HSBC offer a 2 year fixed rate mortgage at 1.99%, but the fee is high.

HSBC have launched a 1.99% 2 year fixed rate mortgage. This new sub 2% mortgage fills the gap left by Abbey for Intermediaries 7 day 1.99% offer, which ended just a few days ago.

HSBC are offering 1.99% for 60% loan value with fees up to £1,999. This new deal replaces the 1.99% fixed rate mortgages previously released by Tesco and Abbey, which have now been withdrawn from the market.

Tesco were the first to offer a 1.99% 2 year fixed mortgage rate for a 60% loan to value, their offer came with a lower £995 fee. Next were Abbey for Intermediaries who offered a 1.99% fix, but for a limited 7 day period with fees of £1,495.

With deals offered at the same rate but with differing fees it is easy to see which mortgage is more affordable overall.

However when mortgages are offered at varying loan to values, with varying rates, fees and incentives it is difficult to work out which offer is actually the cheapest over all.

It is all too easy to be seduced by a low headline rate only to find out that fees are prohibitively high. While HSBC's deal is certainly offered at a low rate its fee is not so low. There may be better deals out there if you compare all current mortgages.

It is crucial to review the market through an impartial independent broker who will offer advice based on your individual needs.

Deal Direct will compare all lenders low rate offers factoring fees charged to find the one that is really best suited to you.

Don't fall for a low rate if the fee then makes it uncompetitive, call Deal Direct as we can find you a cheaper alternative offer.

Contact an adviser now and compare HSBC's new 2 year fixed rate mortgage against the wider market, we can find you the offer which is truly the cheapest.

Call us now for a low rate, low fee mortgage.