Spotlight On: HSBC fixed-rate mortgages

The deal

HSBC this week slashed the rates on its range of two-year, five-year and seven-year fixed-rate deals.

Good points

The bank's cheapest, two-year fix is now 2.44 per cent. The best five-year rate is 3.49 per cent, while you can get 3.79 per cent over seven years.

Bad points

The best two-year deal is only available if you have a deposit of at least 40 per cent. Even then there's a huge, £1,499 arrangement fee. If you have a 20 per cent deposit you get a higher rate of 3.49 per cent.

Conclusion

Headline interest rates have become irrelevant when it comes to mortgages. You'll need a calculator to work out if you're better off paying a higher rate and a lower fee, or the opposite. But, in general, rates are falling. That's good news for movers.