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HSBC extends Rate Matcher mortgage offer

HSBC extends Rate Matcher mortgage offer

Category: Mortgages

Updated: 31/10/2008
First Published: 22/05/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Rate Matcher mortgage is available to all UK homeowners whose fixed-rate mortgage period matures before 31 August, subject to clear affordability criteria and a maximum loan-to-value of 80 per cent.

Since 14 April, when Rate Matcher became available to both new and existing HSBC customers, HSBC mortgage sales have increased almost fourfold on April 2007 and averaged over £100m of new mortgages sales every day.

Extending Rate Matcher means that more borrowers facing the shock of potentially higher repayments at the end of their fixed-rate mortgage period can now match their old rate by switching to HSBC.

HSBC head of mortgages, Martijn van der Heijden, said; "Rate Matcher has been exceptionally 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.

"While the mortgage market remains challenging for borrowers, extending the availability of our Rate Matcher mortgage means we can offer many customers an alternative to significantly higher monthly mortgage payments."

Rate Matcher 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 check the fee payable based on their size of loan and current rate. Like all HSBC's UK mortgages, it is not available through brokers and customers are advised to visit their local HSBC branch.

Customers with loans larger than £250,000 can still make use of their Rate Matcher "allowance" and top up with another HSBC mortgage for the rest of their required funds. Customers can also choose from HSBC's other offers as existing offers may work out more suitable. Since 9 May, HSBC mortgage offers include a 2 year discount mortgage at 5.43 per cent, a 3 year fix at 5.53 per cent and a remortgage lifetime tracker at 5.63 per cent, all with a £999 fee.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.