Spotlight on: HSBC's 5-year fixed mortgage

The deal

HSBC will launch its lowest-ever five year fixed rate mortgage on Monday at 2.49 per cent.

Good points

The bank has also cut rates on two, seven and 10 year deals. Securing a fixed deal can offer future certainty.

Bad points

The low deals are only offered to those with a 40 per cent deposit and even then fees are massive, at up to £1,999.

Conclusion

Taking a fixed rate means taking a gamble. With interest rates stuck at record lows for years you could be better off choosing a variable rate mortgage if rates remain as they are for some time to come. On the other hand if rates suddenly shoot up – perhaps at the time of the next election in 2015 – you may be glad to avoid a payment shock then.