Proactive Investors - HSBC Holdings PLC (LON:HSBA)’s five-year fixed mortgage is among the best deals this week for prospective buyers, analysts have tipped.
Following another week of cuts to its rates, HSBC currently offers interest of 5.25% on a 70% loan-to-value five-year fix, with this including a £999 product fee.
“Those borrowers who are looking to save on the upfront cost of their mortgage and lock into a competitive rate for peace of mind may find this an attractive choice,” Moneyfacts finance expert Rachel Springall commented.
For two-year fixes, Moneyfacts focussed on Santander’s 75% loan-to-value mortgage, which charges interest at 5.81%.
Mortgage rates have fallen repeatedly this month after lenders scurried to lift interest on deals in June and July on fears inflation was easing more slowly than expected.
Nationwide Building Society (LON:NBS) has joined HSBC and Banco Santander (BME:SAN) in cutting rates this week as a result, with reductions of as much as 0.4 percentage points taking its five-year 60% loan-to-value mortgages down to 5.39% and two-year fixes to 5.94%.
According to Moneyfacts, the average interest rate across the UK on a two-year fixed mortgage sat higher at 6.74% on Thursday though, down from a peak of 6.85%.
The average fixed five-year deal housed interest of 6.22% meanwhile, having receded from a high of 6.37%.
Wednesday’s purchasing managers index data could see fixed rates fall even further in coming months too, Hargreaves Lansdown (LON:HRGV) analysts added, as lenders price in fewer future rate hikes by the Bank of England on the deteriorating economic outlook.
“Unfortunately, we can’t expect seismic moves in the immediate future” though, Hargreaves personal finance head Sarah Coles commented.
“For that, we’ll have to wait until the market expects the Bank of England to be cutting rates – which isn’t on the cards for quite some time.”