An HSBC mortgage is launched at 1.79%. Is it as good as it sounds?

A 2 year fixed HSBC mortgage has just been released at an ultra low rate of 1.79%. This is a low rate mortgage for sure - but does it really offer the best deal?

HSBC claims its 2 year fix at just 1.79% is the 'lowest ever' 2 year fixed rate mortgage launched. This may be the case when just reviewing headline rates, however after including fees the deal does not look quite so attractive.

Consider both the rate and fee charged

Once you factor in fees and the large deposit required, HSBC's new mortgage offer is perhaps not the best value deal overall.

A hefty fee of £1,999 is charged, which makes a big difference to overall mortgage affordability. In addition a large 40% deposit is required, which means this low rate mortgage is not available to all would-be borrowers.

The newly launched HSBC mortgage is just one of several ultra low rate deals released over the last couple of weeks.

Mortgages rates are falling.

Lenders are cutting rates market-wide, and there are currently some really cheap deals on offer if you know where to look.

For instance last week Chelsea BS released the previous lowest ever rate at 1.89%, and while the rate is a fraction higher than HSBC's 1.79%, its fee is lower. Does it offer better value? Contact Deal Direct for a product comparison and find out.

Seek impartial advice when looking for a mortgage.

A cheaper mortgage may be found by reviewing the entire mortgage market through independent 'whole of market' broker Deal Direct.

Comparing rates and fees to work out which deal represents the best value, is complex and best done with help. If you want to compare the cheapest deals market-wide contact an impartial adviser.

Deal Direct can compare all lenders offers against this HSBC mortgage to come up with the best deal for your circumstances.

We compare all products on your behalf reviewing rates, fees and deposit levels to find you the very best and most suitable mortgage.

Don't be seduced by a low headline rate – compare the mortgage market today for the best overall mortgage deal.

CALL DEAL DIRECT NOW FOR A LOW RATE QUOTE