HSBC launches fix-track split mortgage

The loan is aimed at borrowers who are unsure whether to keep the flexibility of a tracker or benefit from the security of a fixed-rate.

From April 26, customers will be able to choose to fix 25, 50 or 75 per cent of their loan, with the remaining percentage on a lifetime tracker, at the same rate as the fixed proportion. The interest rate will depend on the proportion of the loan that is fixed and the loan-to-value.



.There is a £999 booking fee and customers can borrow up to £500,000.

HSBC head of mortgages Martjin van der Heijden says: “It is impossible to predict exactly when interest rates will start to rise and borrowers are facing the potentially costly dilemma of whether they should fix or take advantage of the historically low rates with a variable mortgage. Our consumer research shows many households on trackers or standard variable rates feel they should lock in some of the benefit of the low base rate but are not sure how or when.”