A new no fee HSBC remortgage package announced

For borrowers looking to remortgage, a new HSBC remortgage package has been announced that will incur no refinance or legal fees, offers a free valuation and has no penalty for early payment.

Remortgaging at more favourable terms and lower rates is increasing and HSBC is offering a lifetime tracker at 1.99 per cent above base for the life of the loan. The HSBC lifetime tracker offers a rate pegged to the Bank rate which means that the rate cannot be 'massaged' by the lender in the same way as it's own standard variable rates can be. The HSBC remortgage package has been designed to give good ongoing value.

Banking giant HSBC has also announced that it plans to inject at least £15 billion into the struggling UK mortgage market this year. The lender is committed to lending £3 billion to first-time buyers who are struggling to meet stringent mortgage requirements.

The HSBC announcement will put pressure on other mortgage lenders to help UK home buyers with similar measures. The Council of Mortgage Lenders predicts that the mortgage market will shrink this year, which could worsen a housing market that is already described by many as 'merely treading water'.

The highly competitive HSBC remortgage deal is at the top of the mortgage best buy tables. As well as its competitive remortgage deal, the bank has also said that it plans to offer first-time buyers the ability to borrow up to 90 per cent of the cost of a property. It is hoped that this decision will prove popular with customers. The first-time buyer market has shown signs of picking up in recent months, however there are concerns that this resurgence could end when the current stamp-duty holiday finishes in March.