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HSBC launches 1.99% discounted mortgage deal

Competitive rate for consumers with 40% deposit

HSBC has launched a new 2-year discounted mortgage deal, currently charging just 1.99% interest, with a £1,199 initial fee.

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The move catapults HSBC’s mortgage deal to the top of the for homeowners with a large deposit – the maximum the bank will lend is 60% of the property’s value.

The mortgage rate is a discount of 1.95% on HSBC’s standard variable rate. It is not, however, a fixed rate, so if HSBC’s standard rate goes up by, say, 2%, so does the discounted rate. The good news is that there are no early-redemption penalties after the initial 2-year deal. 

To find out if this is the best type of mortgage deal for you, check the Which? mortgage finder. Our interactive mortgage tool allows you to tailor your mortgage search to find deals that fit your exact circumstances.

For more information about each type of mortgage deal, whether fixed, discounted, variable or capped.

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