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The interest rate on a five-year fixed rate mortgage has fallen below 4% for the first time since the financial market turmoil at the end of last year.
Mortgage rates soared to 6% in the aftermath of last September’s mini-Budget but despite the Bank of England raising the base rate to tackle inflation, home loans are being priced lower at least for those with large deposits.
Higher mortgage rates have been cited by some as a reason for lower property demand.
But HSBC yesterday released a five-year fixed-rate mortgage deal for borrowers with a 40% deposit priced at 3.99% with a £999 fee.
It is the first time since September 2022 that a five-year fixed-rate mortgage has been offered by the lender at a rate below 4% and mortgage search platform Twenty7tec suggests it won’t be the last across the industry.
Nathan Reilly, director at Twenty7tec, said: “There’s been a recent return in five-year fixed mortgage searches and it’s been consistent across January, so it’s no surprise that lenders are looking to come back into the market. With inflationary pressures possibly slightly on the wane, as the Bank of England recently explained, we don’t think it’s the last new five-year fixed product to launch under 4%.”
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lets get real for a second, how many people out there can genuinely put down a 40% deposit? This isn't good news for the housing market its just spin from a god awful bank.
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