Money home
Money News
HSBC’s Rate Matcher mortgage lets you fix your low rate
Thursday, 4 June 2009 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.ukDon’t want to pay a premium to fix? HSBC is offering to match or beat your existing mortgage rate and allow you to fix it for up to five years.
HSBC (www.hsbc.co.uk) is relaunching its Rate Matcher mortgage on Monday (8 June), which will offer interest rates as low as 2.49% and allow borrowers to fix their rate for up to five years.
| “Customers can escape the worst effects of the likely forthcoming mortgage rate shock.” |
The bank says it will match or beat the current mortgage rate (down to 2.49%) being paid by any homeowner who has at least 25% equity in their home.
The offer is targeted at customers who are currently on their lenders standard variable rate (SVR), some which are as low as 2.5%.
Martijn van der Heijden, head of mortgages at HSBC, said that the “millions of homeowners enjoying exceptionally low mortgage repayments” need to think ahead and ask themselves how an increase in the base rate would impact their finances.
He noted that one reason people are put off fixing their mortgage is that “the rates on offer are often two to four per cent higher than that what they are currently paying, making it a bitter pill to swallow.”
He said that the Rate Matcher mortgage gives homeowners an opportunity to fix without paying this premium and “escape the worst effects of the likely forthcoming mortgage rate shock.”
To help borrowers work out what rate they would get with this mortgage, HSBC will launch a Rate Matcher calculator on its website on Monday.
Chris Eagle, commercial manager at CreditChoices.co.uk, points out that anyone whose mortgage deal ends within the next six months could take advantage of this deal, but advises customers to act fast if they want to take up HSBC’s offer.
He said: “The deal allows you to delay drawdown (actually switching your mortgage to HSBC) for up to six months after you have paid the booking fee. However, the bank has said that this deal will only be available for a limited period, so if you are interested, it’s worth investigating as soon as you can.”
Is now the time to fix my mortgage? >>>