HSBC reintroduces Rate Matcher mortgage offer

Thursday, 04 June 2009 11:06

HSBC have reintroduced their Rate Matcher mortgage offer, from Monday.

The offer means borrowers can match their old rate or fix a new one, for up to five years, as low as 2.49 per cent.

All UK homeowners can apply for the offer, no matter what their existing mortgage arrangement, which HSBC hopes will enable homeowners to switch and fix at less than their lender's standard variable rate or a rate of their choice.

Martijn van der Heijden, HSBC's head of mortgages, said: "With the base rate at its historic low, it's definitely a case of 'when' not 'if' mortgage rates will rise. It's in the interest of the millions of homeowners enjoying exceptionally low mortgage payments to think ahead now and ask themselves by how much would rates need to rise, to seriously impact their lifestyle. Anyone who would struggle to get by on an interest rate of just four or five per cent should really act now.

"One of reasons floating rate mortgage holders have put off fixing their mortgage is that rates on offer are often two to four per cent higher than what they are currently paying, making it a bitter pill to swallow. Our Rate Matcher mortgage gives these borrowers another option and enables them to fix at, or close to, the rate they are currently paying."

The offer is available for a limited period, but from Monday customers can secure their mortgage and then delay drawdown for up to six months from when they pay the booking fee. The rate matcher has three variable options customers can switch between; interest rate, length of fixed period and LTV. Not all options can be mixed together.

Rate Matcher would enable a homeowner with a loan of £150,000 to gain a fixed rate of 2.79 per cent, for a fixed period of two years, with 60 per cent LTV and a fee of £1,599. The maximum mortgage size for the offer is £250,000, although larger mortgage sizes "can be catered for by topping up with an HSBC standard mortgage product".

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