HSBC lowers rates, fees on fixed-rate mortgages

HSBC will this month be passing on the benefits of lower funding costs to customers.

From July 31st, the bank will lower rates and fees on its fixed-rate mortgages.

Andy Mielczarek, head of lending at HSBC, commented: "With an estimated 750,000 people looking to remortgage in the second half of 2008, we are doing all we can to keep the cost of borrowing down."

Standard two-year fixed-rate mortgages will fall 0.31 per cent, while the booking fee will be reduced by £200 to £599.

This will amount to a saving of £500 a year for a homeowner with a £160,000 mortgage, HSBC said.

Longer fixed-rate loans will fall by 0.16 per cent, with associated booking fees also falling to £599.

Furthermore, a special 5.98 per cent five-year fixed-rate mortgage will be introduced, available to all customers with an HSBC Plus or Premier account, with a booking fee of £999.

Real estate advisor CB Richard Ellis this week urged the government to scrap Home Information Packs and give buyers a stamp duty holiday.

The firm said the moves would invigorate the struggling residential property market.

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