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HSBC launches lowest ever five-year fixed rate mortgage

Dominic Welling dominic.welling@consumerchoices.co.uk

You can fix your mortgage at 3.95% for five years – an all-time bargain rate.

HSBC is offering customers the chance to fix their mortgage at 3.95% for the next five years.

The new mortgage is available for customers with a 40% deposit and has a booking fee of £599.

The bank, one of the largest in the UK which reported profits of £7bn for the last six months, has also launched a new tracker product which is available for the next two weeks only.

This lifetime tracker is set at 1.69% above the Bank of England base rate - currently 2.19% - and has a booking fee of £99.

The tracker is available up until 15 August and is for people who have at least 40% equity in their homes.

Martijn van der Heijden, head of mortgages at HSBC, said: "These new mortgage deals offer the best of both worlds, our lowest ever five-year fixed rate for those customers wanting security, as well as very competitive tracker rates for those preferring flexible payments."

Other new HSBC products launched today (3 August) include:

• Seven-year fixed at 4.89% - 30% deposit and £599 fee needed.

• Two-year fixed at 5.49% - 10% deposit and £599 fee needed.

• Fee-free tracker at 2.79% - 30% deposit needed.