HSBC grabbed a lot of headlines with the lowest five-year fixed rate mortgage ever. But now it's been pulled, where should borrowers turn?
HSBC has withdrawn its ground-breaking 2.99% five-year fixed rate mortgage offer, just four weeks after launch.
The deal required a hefty 40% deposit and carried fees of £1,499 but has now sold out.
Trailblazer
In July, HSBC set the mortgage world alight by offering the cheapest five-year fix ever. The move prompted a raft of other lenders to follow suit with similar cheap deals.
Santander quickly issued an almost exact carbon copy of the HSBC deal. Soon after NatWest muscled in and took the crown for cheapest five-year fix ever and Nationwide launched a competitive four-year option.
What now?
The cheapest five-year fix that HSBC now has to offer is a deal that charges 3.29% on a maximum loan-to-value of 60%, with a fee of £499 (cut from £999).
But Santander and NatWest still have their copycat offers available, which are the cheapest available on a deal of this kind.
Santander offers a rate of 2.99% for five years on an LTV of 60%, with a fee of £1,495. But this deal is only available to current account holders.
NatWest's deal is also on a 60% LTV. It offers a cheaper 2.95% for five years, but comes with an enormous fee of £2,495.
If you don’t have a 40% deposit to hand there are plenty of options for smaller deposits if you want a long-term fixed rate. Leeds Building Society has a good range including one five-year deal for 5.99% on a 95% LTV for a fee of £1,198.
Fabulous five-year fixes
Here is a run down of a few great five-year fixes across a range of deposit sizes. But for help finding the best deal for you, why not pick the brains of one of our fee-free mortgage brokers?
|
Lender |
Rate |
Fee |
Max LTV |
|
2.99% |
£1,495 |
60% |
|
|
2.95% |
£2,495 |
60% |
|
|
3.29% |
£499 |
60% |
|
|
3.49% |
£995 |
70% |
|
|
3.59% |
£99 |
70% |
|
|
3.59% |
£0 |
75% |
|
|
4.19% |
£1,198 |
80% |
|
|
4.19% |
£995 |
75% |
|
|
4.29% |
£0 |
70% |
|
|
4.49% |
£999 |
80% |
|
|
4.49% |
£995 |
85% |
|
|
4.79% |
£999 |
85% |
|
|
4.89% |
£0 |
80% |
|
|
4.99% |
£0 |
90% |
|
|
5.39% |
£0 |
90% |
|
|
5.49% |
£999 |
90% |
|
|
5.99% |
£1,198 |
95% |
*Only available to current account holders
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At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.
Use lovemoney.com's innovative new mortgage tool now to find the best mortgage for you online
At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.
This article aims to give information, not advice. Always do your own research and/or seek out advice from an FSA-regulated broker (such as one of our brokers here at lovemoney.com), before acting on anything contained in this article.
Finally, we tend to only give the initial rate of a deal in our articles, but any deal which lasts for a shorter period than your mortgage term may revert to the lender's standard variable rate or a tracker rate when the deal ends. Before you take out a deal, you should always try to find out from your lender what its standard variable rate is and how it will be determined in the future. Make sure you take all this information into account when comparing different deals.
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