HSBC slashes fixed-rate mortgages

Published 09th Sep 2008

HSBC slashed the interest it charges on fixed-rate mortgages
Paul Dale, economist at City forecasts Capital Economics, said: "Overall, today's news will go some way to convincing the Bank of England's Monetary Policy Committee that the greatest threat to the UK is from weakening demand and not rising inflation."

HSBC, one of the high street's biggest mortgage lenders, carved 0.56 per cent off its two, three and five year fixed rate mortgages.

The rate for its "fees free" range of mortgages comes down from 6.83 per cent to 6.27 per cent from today.

The same range of mortgages with a £799 up front fee comes down 0.46 per cent from 6.43 per cent to 5.97 per cent.

There is also a new three-year fixed rate mortgage with a 5.69 per cent rate and an upfront fee of £999. To take advantage of these deals borrowers must have a deposit of at least 10 per cent.

Mortgage experts said the cut was made possible by steep falls in the City's money market interest rates in recent weeks - with the hope of more to come.

Source: ' daily mail '

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