HSBC launches split-rate mortgages

HSBC has launched a new split loan mortgage which allows people to fix a proportion of their loan and have a tracker rate for the remainder.

Borrowers can opt to fix 25 per cent, 50 per cent or 75 per cent of their loan, with the rest of the sum tracking the Bank of England Base rate at the same rate as the fixed part of their loan.

For anyone wanting to fix 25 per cent of their loan and are borrowing up to 70 per cent loan-to-value LTV, the interest rate stands at 2.49 per cent. This rises to 2.69 per cent for anyone fixing 50 per cent and 2.99 per cent for anyone fixing 75 per cent.

For individuals borrowing a maximum of 80 per cent LTV, the rates range from 2.99 per cent to 3.89 per cent.

People can borrow up to £500,000 on the mortgage and there is a booking fee of £999.

Earlier this month, figures from the Council of Mortgage Lenders highlighted that gross mortgage lending rose by 24 per cent in March.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-04-26 09:17:43 © Moneyextra.com