Almost three quarters of house-hunters polled by HSBC would consider fixing their mortgage for 10 years, as the bank launches its own decade-long fixed rate deal.
HSBC commissioned Opinium to survey more than 1,500 UK homeowners and current house-hunters at the end of May, finding Londoners were most likely to fix for the long term (71 per cent), followed by those in the north east (62 per cent) and Yorkshire and Humberside (51 per cent).
The research marked the launch of HSBC’s new 10-year fixed rate mortgage, priced at 2.79 per cent for purchases and remortgages for up to 70 per cent loan-to-value, with no product fee.
The same deal is also available at up to 80 per cent LTV at 2.99 per cent.
Both deals come with free standard valuation fees and free standard legal fees for both purchases and remortgages.
The deal has been pipped to the top of the best buy table post by Coventry Building Society’s ‘lowest ever’ 10-year fix, priced at 2.39 per cent for deals at 50 per cent loan-to-value and available from Friday (8 July) with a fee of £999.
HSBC’s UK head of mortgages Tracie Pearce said: “Our commitment to offering value to our customers can be seen with our two-year fixed rate at 0.99 per cent, our five-year fixed rate at 1.99 per cent and now our new 10-year fixed rate at 2.79 per cent.
“Fixing a mortgage now can give homeowners important peace of mind, and the new 10-year products offer the assurance that their mortgage rate won’t change regardless of what else might happen with the economy or what the Bank of England base rate does.”
IFA Verdict
Jane King, a mortgage consultant at Ash-Ridge Private Finance, said: “I would be wary of recommending a 10-year fix for younger people as my experience is that their circumstances do change whether they are planning for it or not, and these long term fixed rates can be expensive to get out of.”
peter.walker@ft.com
