HSBC have pulled what was the lowest mortgage rate available which it introduced in June 2016, 1.14% 2 year fixed and they have also increased some of the deals due to rises in costs. This is just one indication that if you have been waiting to fix your costs it might be now or to late.
So as it stands the lowest offer is from First Direct currently 1.09% 2 year fixed, if we take a look back at mortgage rates we can still see that actually the rates are still much lower that 2008 & many people could be saving hundreds a month by switching.
What HSBS had to say about mortgage rates
“When the cost of funding comes down we are always quick to pass on the benefit to customers, and we have been able to do that for almost six months with our 1.14% rate mortgage. The cost of funding has gone up over the last month or so and we have had to reflect that in our recent pricing review.
“We regularly review our rates, and while they still provide good value for those looking to move on to or up the housing ladder, should the cost of funding come back down you can be sure we will reflect that with some great deals.”
Bank of England keep base rate at all time low
Despite other costs increasing, one of the biggest costs affecting mortgages, the base rate of interest, remains at an unprecedented low.
In their last meeting of 2016, the Monetary Policy Committee (MPC) of the Bank of England (BoE) discussed the base rate of interest Thursday 15 December, and decided to keep it at the all time low of 0.25%.
Should you fix a rate now?
It’s looking unlikely that rates will fall much further, so it could be worth fixing your mortgage rate now.
See what a rate rise could do to monthly repayments on a £100,000 mortgage below.
But bear in mind, barring any dramatic economic shocks, it’s unlikely mortgage rates will dramatically shoot up overnight. So don’t rush into fixing a rate without fully considering your options and the full costs of remortgaging.
We still recommend consulting a mortgage broker for any mortgage advice you might need.