HSBC's 2 year fixed rate mortgage at 1.49%, watch the £1,999 fee!

HSBC has launched a 2 year fixed rate mortgage at just 1.49% for 60% loan to value.

While it is true this is an ultra low rate offer, it does come with a sting in the tail.

HSBC is able to offer its eye catching headline rate because it is charging a whooping £1,999 fee.

This 2 year fixed rate mortgage from HSBC is the lowest 2 year fix currently on offer, that is until you factor in the fee. A fee such as the one charged by HSBC can actually add 1% a year on to the actual cost of your deal.

Fees very much impact the cost of any mortgage and so you have to consider what you are being charged before accepting any mortgage offer.

Once you have considered to true costs of a high fee mortgage, you may actually find that there are far cheaper deals on offer through alternative lenders.

How can you make sure you end up with the best deal?

To ensure you end up with the most competitive offer, you are much better off enlisting the services of an impartial mortgage expert to review the market on your behalf.

Independent 'whole of market' brokers are not affiliated to specific lenders, and so check out all mortgage offers to find the best one for your circumstances. Direct-only lenders such as HSBC will only recommend the products within their range, this means you may not end up with the best deal market-wide.

Deal Direct are an independent expert working solely on your behalf to find the very best overall product. We consider ALL factors and costs to ensure you end up with the best mortgage at the lowest cost for your circumstances.

A higher rate with lower fee can work out far more cost effective than a low rate with a £1,999 fee, so don't pay more that you have to when you could contact Deal Direct to compare all lenders cheapest offers against HSBC's new high fee 2 year fixed mortgage.

For the best mortgage offer,

contact Deal Direct on 0800 048 8828.