HSBC battles mortgage misery
Thursday, 31 Jan 2008 12:56
HSBC borrowers coming off fixed mortgages are being offered matched rates in a new deal being introduced by the bank tomorrow.
The mortgage lender has guaranteed to match the interest rate being paid by fixed-rate customers on two, three and five-year deals when they roll off their current plan.
The RateMatcher offer is being launched in a bid to help borrowers combat the effects of the current economic conditions, which are having a damaging impact on the mortgage market.
The offer lasts until the end of April and customers who take advantage of it will need to pay a fee to match their old fixed rate. HSBC calculated over 93 per cent of its customers coming off fixed-rate mortgages in February will have fees of under £500 to pay.
Martin van der Heijden, HSBC's head of mortgages, said the offer comes as the Bank of England announced 1.4 million homeowners faced steep increases in mortgage payments in 2008 – a situation which was set to worsen.
"To remedy this, HSBC's RateMatcher offer is designed to smooth out the ups and downs of moving between mortgage deals to create a sustainable platform for home ownership," he said.
Among the deals available in HSBC's RateMatcher offer is a 4.99 per cent fixed-rate mortgage for three years with a fee of £499 and a 4.95 per cent two-year fixed rate deal costing £999 in fees.