Mortgage News

Today HSBC has cut the rates on its two and five year fixed rate mortgage deals at 60% loan-to-value (LTV).

Mortgage borrowers can now get an HSBC two year fixed rate deal at 1.44%, which is fixed until 31 December 2022. This deal, available at 60% LTV, does not charge any product fees. It has also cut the rate on its two year fixed deal that charges £999 in product fees to 1.14% fixed until 31 December 2022. 

At the same time, HSBC has cut the rates on its five year fixed deals at 60% LTV today. Its fee saver rate has been cut to 1.59%, which is fixed until 31 December 2025 and has no product fees. HSBC has also cut its five year fixed deal that charges £999 in product fees to 1.34% fixed until 31 December 2025.

All these deals come with the incentive of free valuation and, for those remortgaging, no legal fees.

With a volatile stock market and the temporary increase in the stamp duty threshold to £500,000, investing in property could be a more attractive option for investors looking to diversify their investment portfolio.

For those looking to expand their buy-to-let (BTL) portfolio or who are thinking about purchasing their first BTL property, we’ve rounded up some of the best* BTL mortgage deals currently available on the market.

In just five months, the number of mortgage deals available to consumers has more than halved, falling from 5,222 on 1 March to just 2,526.

As well as this, data due to be released in the Moneyfacts UK Mortgage Trends Treasury Report shows that in the four weeks between 1 July and 1 August, 202 mortgage deals disappeared from the market. This is despite the housing market picking up after the spring lockdown and being boosted by the Government’s rise of the stamp duty threshold.

“The introduction of the stamp duty holiday and record low average rates following an enforced period of shutdown for the market has seen demand for mortgages escalate in recent weeks,” Eleanor Williams, finance expert at Moneyfacts.co.uk, explained. “However, product choice and availability remains a key issue for mortgage borrowers, with this month continuing the downward trajectory we saw between June and July; there were 2,526 live products as of the 1 August, a fall of 202 compared to last month, and 2,696 less than the number of products on offer at the start of March, meaning there is 48% less choice available to consumers as the industry continues to feel the impact of the Coronavirus pandemic.”

Although the stamp duty threshold increased to £500,000 last month has made it a very attractive time to move home – as our story Is now a good time to move home? highlights – there are several factors homeowners should consider before moving. For those who are in the process of buying a new home, our story on How to fast track your mortgage application post-Covid-19 lockdown offers some tips on ensuring that the mortgage application goes through as quickly as possible.

Overall, mortgage rates have remained highly competitive this week and below we have highlighted the lowest rates available in the charts overall. While getting a low rate is important when considering a mortgage deal, borrowers should keep in mind that the lowest rate might not be the best deal overall and instead they should consider factors such as incentives, product fees and flexible features when choosing a product. Borrowers who need help in deciding which mortgage is right for them should consider speaking to a mortgage broker.