Lowest ever UK mortgage rate
Prospective UK property buyers can take advantage of a fantastically low five year fixed mortgage rate courtesy of the HSBC – providing they have a massive 40 per cent deposit.
The new deal from one of the UK’s largest lenders is the lowest ever five year fixed rate mortgage at 2.99 per cent but applicants have to supply equity or funds to the value of 40 per cent as deposit – plus a booking fee of £1,499. The lender is also offering a seven year fixed rate mortgage at just 3.99 per cent – subject to the same fee.
In years gone by UK mortgages were in plentiful supply and most first time buyers were keen to sign up for 100 per cent mortgage terms but according to research in today’s market the majority of first time buyers have to amass a 20 per cent deposit to qualify for funding from a fraction of home loan products in comparison to those available just four years ago.
Mortgage experts approve the new deals from HSBC but agree the hefty deposit size will be unrealistic for the majority of new buyers.