Spotlight On: HSBC's tracker mortgage

The deal

HSBC is offering a fee-free lifetime tracker mortgage at base rate plus 1.99 per cent, giving an initial pay rate of 2.49 per cent.

Good points

It's a decent rate for the term and it's fee-free. Comparable deals all come with arrangement fees. Also there are no early repayment charges.

Bad points

You need to be an HSBC current-account customer to be eligible and have a hefty 50 per cent deposit or equity in your home.

Conclusion

With interest rates expected to stay low for the foreseeable future, experts like lifetime trackers with no early repayment charges. They give borrowers the flexibility to switch to a fixed rate if rates suddenly start to rise. For those only requiring a loan at 50 per cent loan-to-value it's definitely worth considering – you'll have to go direct to HSBC though.