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You can find the current article at its original source at http://www.guardian.co.uk/money/2012/aug/16/mortgage-price-war-hsbc-pulls-deal
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| Mortgage price war: HSBC to pull lowest ever five-year fix | Mortgage price war: HSBC to pull lowest ever five-year fix |
| (1 day later) | |
| HSBC is to withdraw the 2.99% fixed-rate mortgage which started a price war over five-year deals when it was launched just four weeks ago. | HSBC is to withdraw the 2.99% fixed-rate mortgage which started a price war over five-year deals when it was launched just four weeks ago. |
| At the time the deal, which was offered to borrowers with at least 40% to put down as a deposit, was the lowest five-year fix that had ever been offered in the UK, but other lenders followed suit with a flurry of similar deals. | At the time the deal, which was offered to borrowers with at least 40% to put down as a deposit, was the lowest five-year fix that had ever been offered in the UK, but other lenders followed suit with a flurry of similar deals. |
| Santander matched the rate, also charging a £1,495 arrangement fee, then NatWest beat it with a 2.95% five-year fix. The fee on the latter deal is £2,495. Nationwide responded with a four-year fix at 2.89%. | Santander matched the rate, also charging a £1,495 arrangement fee, then NatWest beat it with a 2.95% five-year fix. The fee on the latter deal is £2,495. Nationwide responded with a four-year fix at 2.89%. |
| HSBC said it would withdraw the loan at the close of business on 16 August because it had lent all the funds allocated to the deal. A spokeswoman said the bank had expected the mortgage to sell quickly: "It was designed to bring in business – we knew it would be popular." | HSBC said it would withdraw the loan at the close of business on 16 August because it had lent all the funds allocated to the deal. A spokeswoman said the bank had expected the mortgage to sell quickly: "It was designed to bring in business – we knew it would be popular." |
| The bank still offers a five-year fixed-rate at 3.29% with a £499 arrangement fee. | The bank still offers a five-year fixed-rate at 3.29% with a £499 arrangement fee. |
| Santander said there were "no immediate plans" to withdraw its rate, while NatWest said its loan was still available. | Santander said there were "no immediate plans" to withdraw its rate, while NatWest said its loan was still available. |
| Elsewhere, lenders have continued to cut rates on mortgages for borrowers with sizeable deposits. Barclays has reduced its two-year fix for borrowers with a deposit of at least 40% by 0.2 percentage points to 2.89%. The application fee is £999, although those who qualify for a loyalty mortgage will pay just £499. | Elsewhere, lenders have continued to cut rates on mortgages for borrowers with sizeable deposits. Barclays has reduced its two-year fix for borrowers with a deposit of at least 40% by 0.2 percentage points to 2.89%. The application fee is £999, although those who qualify for a loyalty mortgage will pay just £499. |
| The bank's Future Fix deal, a five-year mortgage which starts as a two-year tracker then reverts to a three-year fix, is now 0.3 percentage points cheaper during the tracker period. The rate is base plus 2.49%, which is currently 2.99%. This also has a £999 application fee and is available to anyone with at least a 30% deposit. | The bank's Future Fix deal, a five-year mortgage which starts as a two-year tracker then reverts to a three-year fix, is now 0.3 percentage points cheaper during the tracker period. The rate is base plus 2.49%, which is currently 2.99%. This also has a £999 application fee and is available to anyone with at least a 30% deposit. |
| Virgin Money, meanwhile, has reduced rates on its two-, three- and five-year fixed-rate deals for borrowers with at least 30% to put down as a deposit. | Virgin Money, meanwhile, has reduced rates on its two-, three- and five-year fixed-rate deals for borrowers with at least 30% to put down as a deposit. |
| It has cut the rate on its two-year fix to 2.89%, with a fee of £995, or 3.29% with no arrangement fee. That is available for borrowers with a 40% deposit. Those who want to borrow 70% of a property's value will also see price cuts: the two-year fix is reduced to 3.15% with a £995 arrangement fee or 3.55% without. | It has cut the rate on its two-year fix to 2.89%, with a fee of £995, or 3.29% with no arrangement fee. That is available for borrowers with a 40% deposit. Those who want to borrow 70% of a property's value will also see price cuts: the two-year fix is reduced to 3.15% with a £995 arrangement fee or 3.55% without. |
| Virgin has also reduced the rate on its two-year fixed-rate buy-to-let mortgage, cutting it by 0.2 percentage points to 3.79%. This deal has a £1,995 arrangement fee and is available up to 60% loan-to-value. | Virgin has also reduced the rate on its two-year fixed-rate buy-to-let mortgage, cutting it by 0.2 percentage points to 3.79%. This deal has a £1,995 arrangement fee and is available up to 60% loan-to-value. |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| HSBC | HSBC |
| Nationwide | Nationwide |
| Provided by London & Country for the Guardian |