High street lender HSBC is reintroducing its successful Rate Matcher mortgage offer for a limited period.
The deal promises to match or beat existing mortgage rates as low as 2.49% for up to five years.
HSBC says it is in response to current market conditions which have seen re-mortgage activity slow dramatically.
Current standard variable rates (SVRs) are relatively competitive and homeowners looking to remortgage often struggle to find better rates that they can fix.
HSBC says customers will be able to use the Rate Matcher calculator on its site to build the mortgage that matches their requirements.
The mortgage has three variable options customers can shuffle between – interest rate, length of fixed period and loan to value, which together will generate their fee.
Not all options can be mixed together, for instance the lowest interest rate of 2.49% is only available over two years, though HSBC says customers wanting to borrow £120,000 can do so at under 3% and pay less than a £1,000 arrangement fee.
HSBC: act now to lock-in low rates
HSBC’s head of mortgages, Martijn van der Heijden said: ‘With the base rate at an historic low, it’s definitely a case of ‘when’ not ‘if’ mortgage rates will rise.
‘It’s in the interest of the millions of homeowners currently enjoying exceptionally low mortgage payments to think ahead now and ask themselves by how much would rates need to rise to seriously impact on their lifestyle.
‘Anyone who would struggle to get by on an interest rate of just four or five per cent should really act now.’
Check out the Which? mortgage finder to find out what deals are on offer which could save you money on your mortgage.
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