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With a 0.94 percent fixed-rate contract, the UK mortgage price war heats up.

With a 0.94 percent fixed-rate contract, the UK mortgage price war heats up.

Only borrowers with large deposits can take advantage of HSBC and TSB's offers.

As the pricing battle between lenders heats up, UK mortgage consumers now have the option of choosing between two loans with fixed interest rates of 0.94 percent for two years.

The ultra-low rate, which is lower than the previous best bargain of 0.95 percent, is being offered by HSBC and TSB, and it joins a growing number of sub-1% options for borrowers with big deposits.

According to HSBC, the 0.94 percent rate was the lowest company had ever offered. Its mortgage has a £999 charge and is available to both first-time buyers and remortgaging customers. The TSB arrangement, which went live last week, is only available to remortgagors and comes with a £995 cost.

For those borrowing up to 75 percent loan-to-value (LTV), HSBC provides a five-year fixed rate of 1.29 percent, while those borrowing 95 percent of the cost of their property can fix for two years at 3.39 percent. Remortgagors at TSB can fix for two years at 1.09 percent up to 75 percent LTV, but between 85 and 90 percent LTV, the rate jumps to 3.14 percent.

These are some of the lowest rates ever provided, demonstrating how eager lenders are to recruit borrowers.

The HSBC offer is valid for loans of up to £5 million. Those borrowing less than £500,000, according to Ashley Thomas, a director at mortgage broker Magni Finance, would pay less if they accepted HSBC's no-fee option with a 1.14 percent APR.

Drop a mail to andy@harveybowes.com to get a quote for your home loan or check out the facebook pages of UK Smart Property, and Andy Coghlan Harvey Bowes.

#finance #uksmartproperty #AndyCoghlanHarveyBowes #debt #mortgage #mortgagebroker #debt #smartfinance #property #harveybowes #economy #housing #realestate


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