Cheap fixed rate mortgage customers could benefit from HSBC offer
April 19, 2008
There has been a great deal of concern recently over the number of homeowners that are due to come off cheap fixed rate mortgage this year, with worries over how these homeowners would manage the increased interest rates and repayment after coming off rates as low as 4.25%. However, the HSBC has recently announced that it has launched a new product for a short period of time that could provide help and peace of mind to those due to come off their cheap fixed rates.
Both HSBC mortgages customers and those with mortgages elsewhere may be able to take up the HSBC’s Rate Matcher deal, which is where the bank matches the rate that the homeowner is currently on. The lowest rate that the bank will match is 4.54% and there are eligibility requirements in place, including the need to put down a 20% deposit. However, those that do qualify could enjoy another two years fixed on their cheap rate.
One industry expert said: ‘HSBC has thrown a lifeline to hard-pressed mortgage borrowers today with the offer of matching anyone’s fixed rate deal for another two years. You will need to have a 20% deposit and if you were lucky enough to secure a rate below 4.54% previously you won’t qualify. And the £999 fee might put some people off, particularly when cash is already tight. But the average fixed rate mortgage deal is currently around 6.2% and there are very few deals below 5%. So HSBC is in a strong position. This is a really clever move to build market share and people should flock to HSBC while the offer is out there.’
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