Spotlight On: HSBC five-year fixed mortgage

The deal

HSBC has a new, five-year, fixed-rate mortgage at 2.99 per cent, as well as a seven-year fix at 3.99 per cent and new tracker and discount mortgages.

Good points

The bank claims the deal is the lowest-ever, five-year fixed rate.

Bad points

There's a big arrangement fee of £1,499 and the deal is only available to those who can raise at deposit of at least 40 per cent. That rules out first-time buyers, although HSBC is offering a fee-free, two-year fix at 3.84 per cent to those with a 10 per cent deposit.

Conclusion

You will struggle to find a tracker lower than this, so David Hollingworth at London & Country Mortgages said: "It will appeal to borrowers that have been mulling over whether it's the right time to fix in a benign interest-rate environment."