HSBC has launched a 5-year fixed rate mortgage charging 5.55% until March 2012, then reverting to the bank's variable rate currently 6.25%. There are no booking, exit or higher lending charges.
Available to both new and existing customers - and with a free transfer package available for borrowers switching from another lender - the loan permits repayments of up to 20% annually without penalty.
However, if the customer increases standard monthly payments by more than 20% or repays, by any other method, the whole or any part of the mortgage, over and above their standard monthly payment during the fixed rate period, an early repayment charge of 1% will apply.
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