HSBC pulls top five-year fixed rate mortgage deal

Updated: 
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HSBC has withdrawn its ground-breaking 2.99% five-year fixed rate mortgage offer, just four weeks after launch.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.


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%



More stories




SPONSORED FINANCIAL CONTENT