HSBC extends mortgage switching offer for fixed rate borrowers

HSBC has extended its Rate Matcher mortgage deal by six weeks to June 29th 2008.

The bank has also extended the its rate matching mortgage service to all UK homeowners, whose fixed-rate mortgage period matures before 31 August, subject to affordability criteria and a maximum loan-to-value of 80 per cent.

HSBC says sales have increased four fold since it made the service available on April 14th. Although to some extent the service is no more than clever marketing as while the rate matching deal is available to all homeowners the terms are such that HSBC has enabled itself to restrict the number of applications it receives.

The service has been designed to help homeowners stabilise their future mortgage commitments by matching two-year fixed rates as low as 4.54 per cent for a further two years. Lending is limited to 80 per cent LTV and to a maximum of £250,000.

Fees are payable depending on the interest rate and size of loan requested. Customers can use a fee calculator at HSBC's website check the fee payable based on their size of loan and current rate.

Like all HSBC’s UK mortgages, it is not available through mortgage brokers and customers are advised to visit their local HSBC branch.

HSBC head of mortgages, Martijn van der Heijden, said the Rate Matcher had been well received by homeowners. "We successfully serviced 37,000 calls in the first four days of the offer and we are continuing to sell almost four times our normal value of mortgages. Importantly, the increase in business has not been at the expense of quality. We have maintained our conservative credit scoring, and have seen the average mortgage equal just 56 per cent of the property it was secured against.