HSBC Launches New Fixed-Rate Mortgage at 2.93% for First 3 or 5 Years
HSBC has introduced a new fixed-rate mortgage plan offering a rate of 2.93% for the first three or five years, up 0.2 percentage points from its previous plan that ended in August. Applications are open until year-end, with loan drawdown required by April 2027. The rate is 0.32 percentage points below the current HIBOR-linked mortgage rate of 3.25%, reducing monthly payments by 4% over a 30-year term. Fixed-rate mortgages now account for 25% of new mortgages, a level not seen in over eight years.
HSBC has launched a new fixed-rate mortgage plan with a fixed rate of 2.93%. The previous fixed-rate plan, offered at 2.73%, ended at the end of August. The new plan retains the option of a three-year or five-year fixed-rate period, with the rate set at 2.93%, 0.2 percentage points higher than the previous rate. After the fixed-rate period ends, borrowers can switch to the market-standard HIBOR-linked mortgage plan, priced at HIBOR plus 1.3 percentage points. Applications for the new plan are open until the end of the year, and the loan must be drawn down by the end of April 2027.
Compared with the current market HIBOR-linked mortgage rate of 3.25%, the new fixed-rate plan's 2.93% is 0.32 percentage points lower. Over a 30-year repayment period, monthly payments under the fixed-rate plan are 4% lower than under the HIBOR-linked plan. Market data also show that the take-up rate for fixed-rate mortgages has risen for ten consecutive months, reaching 25% recently, the highest level in more than eight years.