HSBC 1.99% discounted mortgage creates huge interest

HSBC is experiencing a huge amount of interest in its 1.99% discounted variable mortgage deal.

Since launching its 1.99% discounted variable mortgage on 1st September, HSBC has experienced double the number of customers visiting its mortgage web site and call centre volumes have increased by 78% compared with July and August.

The 1.99% discounted rate is linked to the HSBC standard variable rate (SVR), which is currently 3.94%, and is then discounted by 1.95%.

This means that increases in the SVR will raise the rate for this discounted mortgage, however it remains the cheapest mortgage deal on the market.

There are two catches to this mortgage, though.  At least a 40% deposit is required and there is a £1,199 booking fee, however HSBC claim that over 50% of mortgage applicants are eligible for this mortgage.

As Martijn van der Heijden, head of mortgages at HSBC explains: “Since announcing the 1.99% deal we have seen a huge amount of interest from customers.”

“Although there’s been some unfounded speculation that the deal would be reserved for a minority, in reality well over half the UK’s 11.5 million mortgage holders qualify for the deal and HSBC continues to accept more than seven in ten applicants. We remain very competitive and open for mortgage business.”

HSBC fixed and variable mortgages are amongst the most competitive in the market at the moment and the bank currently has a 9.7% market share for new loans.