Spotlight On: HSBC's fixed rate mortgage

The deal

HSBC launches on Monday what it claims are its lowest-ever fixed rate mortgages.

Good points

The bank is offering a two-year fixed deal at just 1.79 per cent. There's a five-year fix at 2.78 per cent, seven years at 3.49 per cent, and 10 years at 3.99 per cent.

Bad points

You need at least a 40 per cent deposit to get the rates. There's also a massive £1,999 booking fee.

Conclusion

Headline rates are, once again, misleading. Borrowers could be attracted unaware that they'll have to stump up £2,000 to get the rate. In fact you could be better off with a higher interest rate but much lower fee. HSBC offers fee-free mortgages from 4.15 per cent to its customers with 10 per cent deposit.