HSBC extends ‘RateMatcher’ for fixed rate customers

gt94sss2

HSBC has announced that its RateMatcher guarantee, which matches the interest rate its fixed rate mortgage customers currently pay when they roll off their existing deal, is being extended to 30 June 2008. The guarantee, originally only on offer until 30 April, has been very popular with customers’ coming to the end of their fixed rate period choosing to re-fixing at the same rate.

Many homeowners may well be still struggling to find a mortgage rate close to their existing deal once it comes to an end. However, HSBC fixed rate mortgage customers can escape the worst effects of this mortgage rate shock, with customers being able to re-fix at their current rate, some as low as 4.55%.

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Regards
Sunil

[Deleted User]

Very interesting, I wonder if other lenders will do the same?

poppy10_2

I assume there are some hefty fees associated with this?

Qual123

I doubt it, i think HSBC have done this because they dont deal with brokers. in this day and age most people are using them (thanks to sites such as this one) and therefore HSBC's mortgage book is getting smaller. The deal they are offering is almost unbeliverable, there is nothing out there that comes close. Although i think this is a brave move by the bank its also very nice to see loyalty being rewarded!!

gt94sss2

Qual123 wrote: »

I doubt it, i think HSBC have done this because they dont deal with brokers. in this day and age most people are using them (thanks to sites such as this one) and therefore HSBC's mortgage book is getting smaller. The deal they are offering is almost unbeliverable, there is nothing out there that comes close.

I don't think this offer is because HSBC don't deal with brokers!

This announcement is actually an extension of the offer that HSBC originally announced in February.

I think they have always been happy with the number of mortgages they have in the UK - and deliberately stopped chasing a lot of new business a year or two ago - when they judged the UK housing market prices had become unsustainable - hence, they have not been the 'most competitive' for most new borrowers .

I suspect HSBC are actually doing this because:

- it is cheaper to retain an existing customer than to get new ones;
- this way they can keep their loan book at the same size with existing borrowers, who will now have a lower LTV; rather than seeing those borrowers go elsewhere
- HSBC, unlike most other lenders are not really affected by the 'credit crunch' and will actually have gained a lot more UK deposits following problems at other banks..
- this offer increases/improves their customers views of them/their brand

.. and the fees quoted in the HSBC press releases seem very low.

I am betting there will be quite a few people who are now going to wish they had originally taken out a mortgage with HSBC a few years ago - even if it wasn't the cheapest option then - HSBC customers will now be benefiting from their original decision..

Regards
Sunil