HSBC pulls top five-year fixed rate mortgage deal

HousesHSBC grabbed a lot of headlines with the lowest five-year fixed rate mortgage ever. But now it's been pulled, where should borrowers turn?

HSBC has withdrawn its ground-breaking 2.99% five-year fixed rate mortgage offer, just four weeks after launch.
The deal required a hefty 40% deposit and carried fees of £1,499 but has now sold out.

Trailblazer
In July, HSBC set the mortgage world alight by offering the cheapest five-year fix ever. The move prompted a raft of other lenders to follow suit with similar cheap deals.
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Santander quickly issued an almost exact carbon copy of the HSBC deal. Soon after NatWest muscled in and took the crown for cheapest five-year fix ever and Nationwide launched a competitive four-year option.

What now?
The cheapest five-year fix that HSBC now has to offer is a deal that charges 3.29% on a maximum loan-to-value of 60%, with a fee of £499 (cut from £999).

But Santander and NatWest still have their copycat offers available, which are the cheapest available on a deal of this kind.

Santander offers a rate of 2.99% for five years on an LTV of 60%, with a fee of £1,495. But this deal is only available to current account holders.

NatWest's deal is also on a 60% LTV. It offers a cheaper 2.95% for five years, but comes with an enormous fee of £2,495.

If you don't have a 40% deposit to hand there are plenty of options for smaller deposits if you want a long-term fixed rate. Leeds Building Society has a good range including one five-year deal for 5.99% on a 95% LTV for a fee of £1,198.

Fabulous five-year fixes
Here is a run down of a few great five-year fixes across a range of deposit sizes. But for help finding the best deal for you, why not pick the brains of one of our fee-free mortgage brokers?

Lender

Rate

Fee

Max LTV

Santander*

2.99%

£1,495

60%

NatWest

2.95%

£2,495

60%

HSBC

3.29%

£499

60%

Virgin Money

3.49%

£995

70%

Nationwide

3.59%

£99

70%

The Post Office

3.59%

£0

75%

Leeds BS

4.19%

£1,198

80%

NatWest

4.19%

£995

75%

HSBC

4.29%

£0

70%

Clydesdale Bank

4.49%

£999

80%

Monmouthshire BS

4.49%

£995

85%

The Cooperative Bank

4.79%

£999

85%

NatWest

4.89%

£0

80%

first direct*

4.99%

£0

90%

HSBC

5.39%

£0

90%

The Cooperative Bank

5.49%

£999

90%

Leeds BS

5.99%

£1,198

95%


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