HSBC extends olive branch to homeowners

Posted 2008-04-9

HSBC has gone against the grain in the current mortgage market by pledging to match the interest rate of any borrower coming off a fixed-rate deal.

The offer comes in sharp contrast to recent news emanating from the sector, which has seen a slurry of lenders rein in mortgage approvals.

An estimated 1.4 million borrowers are set to come off their fixed-rate deals this year and one recent report from Fool.co.uk suggested that the average rate has jumped from 4.3 per cent in 2006 to 6.3 per cent today.

But with HSBCs new promotion, dubbed the Rate Matcher, homeowners will now be able to secure a re-mortgaging deal as low as 4.54 per cent.

A maximum loan-to-value ratio of 80 per cent applies on the deal, as does as arrangement fee of between £599 and £999.

The Rate Matcher promotion is available for the next five weeks only and it is open to HSBC customers as well as people who have taken out a mortgage elsewhere.

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