HSBC withdraw their 5 year fix rate at 2.99%
High street bank HSBC is to withdraw the 2.99% fixed-rate mortgage which started a price war over five-year deals when it was launched just four weeks ago.
At the time the deal, which was offered to borrowers with at least 40% to put down as a deposit, was the lowest five-year fix that had ever been offered in the UK, but other lenders followed suit with a flurry of similar deals. Santander matched the rate, also charging a £1,495 arrangement fee, then NatWest beat it with a 2.95% five-year fix. The fee on the latter deal is £2,495. Nationwide responded with a four-year fix at 2.89%.
HSBC said it would withdraw the loan at the close of business on 16 August because it had lent all the funds allocated to the deal. They have not confirmed how much funds were used as this rate was used to generate new business for he bank.
Santander said there were "no immediate plans" to withdraw its rate, while NatWest said its loan was still available.
Elsewhere, lenders have continued to cut rates on mortgages for borrowers with sizeable deposits. Barclays has reduced its two-year fix for borrowers with a deposit of at least 40% by 0.2 percentage points to 2.89%. The application fee is £999, although those who qualify for a loyalty mortgage will pay just £499.
For any borrowers who are looking at 5 year fix can check out the rates on our website. Just click on the link http://thebusinessadvicecentre.com/index.php/mortgages/mortgagefinder