Mortgage rates at under 1% continue to increase
The number of sub-1% mortgages on offer in the UK has increased as major banks and lenders extend their ranges.
HSBC UK has unveiled a rate below 1% for the first time in nearly five years, while Nationwide Building Society is offering a 0.99% mortgage fixed for two years for borrowers with a 40% deposit.
HSBC has also slashed rates on various deals across its range, including those offered for people with 5% deposits under the UK Government-backed mortgage guarantee scheme. Among the new offers at HSBC are a two-year fixed-rate deal at 0.99%. Borrowers need a 40% deposit and it has a £999 fee.
Nationwide’s 0.99% mortgage has a £1,499 fee. The first-time buyer mortgages at Nationwide also come with £500 cashback, while those looking to remortgage to the society can choose between £500 cashback or free standard legal fees.
In April, Scottish Financial News reported that Hinckley & Rugby Building Society launched a two-year variable mortgage at a rate of 0.99%.
Clydesdale Bank owner Virgin Money has also launched its Greener Mortgages after a survey found tackling climate change is important to 78% of people. Nationwide and NatWest Group both offer similar products.
Nationwide also has a Green Additional Borrowing mortgage for those who already have a mortgage with the lender. The mortgage is fee-free, it has the lender’s “best” rate, 0.75%, and people can borrow up to £25,000 depending on individual circumstances, The Press and Journal reports.
Increased demand has driven average house prices up 10.9% over the past year, the fastest pace for almost seven years, according to the latest Nationwide House Price Report. The index also revealed a new record average price of £242,832, up £23,930 over the past twelve months.