5 year fixed rates now start from 1.99%.
Once again 5 year fixed rates have fallen below 2%. A deal released by HSBC is now available to borrowers with a 40% deposit at 1.99%.
While this is a very low rate to be sure, the downside is the fee. With the arrangement fee set at £1,995, it’s worth searching the market to see what other offers are available.
As we’ve commented on before, ultra-low rates come at a price which is in the form of high fees. While an eye catching headline rate might look at first glance a great deal, once you dig deeper it might not be as competitive as you first think.
Fees really can impact the affordability of a mortgage offer, which is why it’s crucial to check all deals on a like-for-like basis. This however is easier said than done when acting alone, comparing varying terms, criteria, rates and incentives is not a straightforward job, which is why it’s better to seek advice and a whole-of-market search from one of our advisers.
At Deal Direct we compare ALL lenders mortgage ranges. We look at every deal on a like-for-like basis before recommending the one which we believe suits your needs best.
If we believe the HSBC deal is the best available for your deposit level we’ll tell you, if it’s not we’ll recommend the deal that is.
Don’t be fooled by an ultra-low rate, speak to us at Deal Direct to find out if the mortgage on offer is the right one for you.
For advice and a competitive quote,
call us on 0800 048 8828.
