HSBC pulls best ever deal after just a month
Friday 17th August 2012
HSBC, which made waves by introducing the lowest-ever five-year fixed rate, pulled the product yesterday – after just one month.
The mortgage, which drew huge media coverage, was aimed at borrowers with a 40% deposit, offering a fixed rate of 2.99% for five years with a booking fee of £1,999.
The deal prompted a price war. Santander matched the rate, charging a £1,495 arrangement fee, before NatWest beat it with a 2.95% five-year fix with a fee £2,495. Nationwide responded with a four-year fix at 2.89%.
A spokeswoman for HSBC said: “We have simply reached the end of funding after one month. The money allocated for the product has been used.”
She added: “It was designed to bring in business. We knew it would be popular.”
From today, HSBC will be offering a five-year fix at 3.29%, but will cut the fee from £999 to £499.
Santander said it has no immediate plans to withdraw its rate, and NatWest also said its loan remains available.
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