The new launches will fuel hopes of price war among lenders to get their rates to the top of the best buy tables
HSBC has undercut NatWest and Nationwide to launch a 3.92% loan available through brokers and direct.
Its new five-year fix is at 60% loan-to-value with a £1,499 fee, undercutting NatWest’s direct-only deal, which is 3.97% with a £1,495 fee.
Nationwide’s deal is at 3.99% with a £1,499 fee, also fixed for five years but unlike NatWest’s it is available through brokers as well as direct.
NatWest’s move to launch a sub-4% deal that is 6 bps cheaper for direct customers than its best intermediary rate has caused frustration for brokers who do not want to see a resurgence of dual pricing.
As well as the new 3.92% rate, HSBC is offering a lower fee alternative which still undercuts the other two sub-4% deals.
It is offering a 3.95% five-year fix with a £999 fee, also at 60% loan-to-value.
The new launches will fuel price war among lenders to get their rates to the top of the best buy tables.
Trinity Financial product and communications director Aaron Strutt says: It is good news for borrowers that lenders are reducing their rates and five-year fixes in particular are looking so much better value for money.
He said: Banks and building societies are still fighting it out for business but the cheapest deals really are limited to borrowers with the biggest deposits. NatWest launched a 3.97% five-year fix a few days ago and HSBC has already acted to undercut the deal with some great deals available to brokers and customers applying directly.
HSBC’s two-year fix is also pretty decent at 4.41%, he said.
Lots of borrowers think rates will come down over the near term and do not want to lock into a five-year fix, he added.
