Could This Be The End Of Super Cheap Home Loans?

Britain’s biggest bank has signalled the death of the sub-1 per cent deal. In a symbolic move, HSBC ditched its record breaking 0.99 per cent two year fixed-rate offer as it hiked mortgage rates across the board. Over the summer, it became the first lender to drop its fixed-rate home loans below the 1 per cent threshold, launching the cheapest two year fixed-rate deal ever. But the bank has now increased the rates on dozens of fixed-rate deals by up to 0.5 percentage points – adding hundreds of pounds to the cost of repayments over a year. Campaigners warned this would come as a shock to borrowers who may not have budgeted for increases after years of falling rates. Read more on the Daily Mail website.