HSBC RateMatcher extended to ALL (non-HSBC) customers!

owitemisermusa

http://news.bbc.co.uk/1/hi/business/7337861.stm

Just saw this. This could rock the market. Don't know if further details are available!

OWM

sdooley

Depends on the fee

borntobefree

Available to all non customers for 5 weeks. You maybe able to secure a deal for later - not sure.

Got to be good news though;)

Markyt

80% max LTV too, so rules out a big chunk of the people it is supposed to help.

BACKFRMTHEEDGE

It should stop the negative equity spiral though and problems because home owners can't afford their mortgage, makes stagnation more likely than collapse. Got to be a good thing.:D and will probably prompt some competition from other mortgage lenders.;)

snarffie

BACKFRMTHEEDGE wrote: »

It should stop the negative equity spiral though and problems because home owners can't afford their mortgage, makes stagnation more likely than collapse. Got to be a good thing.:D and will probably prompt some competition from other mortgage lenders.;)

As the article says, it's a very shrewd move by HSBC to be cleaning up on the current uncompetitive market. They can cherry pick the best mortgage applications, and they apparently have the funding to cover them, and should have a very healthy book after the credit crunch is over.

The analogy (to my tiny mind) is of a person who saved while everybody else borrowed and spent, then cleans up on the sales when everybody else is skint. The bonus is that the saver gets the same amount of stuff as the spenders, and has savings to spare at the end while the spenders are still paying their debts.

merlinthehappypig

BACKFRMTHEEDGE wrote: »

It should stop the negative equity spiral though and problems because home owners can't afford their mortgage, makes stagnation more likely than collapse. Got to be a good thing.:D and will probably prompt some competition from other mortgage lenders.;)

It will be interesting, but I suspect that it is more of a headline than something that will genuinely help.

As Markyt says you need a minimum of a 20% deposit and this is going to rule out a large percentage of the people most likely to be unable to afford their mortgage or go into negative equity.

It will help the better off homeowners who wouldn't normally be expecting problems anyway, but does nothing for most people coming off fixed rates.

If anything it will further increase the gap between the 'haves' and 'have nots'.

The fee is an issue too and that hasn't been disclosed. When we looked for a mortgage deal last week many of the headline lower fixed rates were actually more expensive than some of the higher rates when the fees were apportioned out over the fixed period.

I suspect that this offer will be great for quality customers with large mortgages and few others.

silvercar

Its only for 2 years, so borrowers are going to have to weigh up carefully if its worth moving.

My 5% fix has just ended but the deal took me to a lifetime BOE tracker+0.75%; I would be 1% better off now but then with 2 interest rate drops that reduces to 0.5% and then after 2 years I pay the penalty.

They have a 4.99% deal with a 1499 fee, so I imagine the fee would be similar.

whistler-alison

Hi - my 5 year fixed rate comes to an end on 31 August. Is it too early for me to be thinking about this (although I can pay off 99% of my mortgage without penalty). I've read on this board that the time to start looking about for a remortgage is three months before the end of your current deal, so I'm a month ahead. Thanks

broughtonwolf

Anybody found out what the fees are yet or other caveats? I am coming to the end of a fixed rate 31st July and facing circa £100 - £ 120 jump in monthly mortgage payments. I have a LTV of approx 48% so obviously this announcement has grabbed my attention.

Predictably -mortgage line is experiencing heavy demand this morning

[Deleted User]

Just spoke to HSBC. The offer doesnt start until 14th April; the staff know nothing about it and have been caught out by a leak to the web. They are snowed under with calls but are telling customers to call back when the product is announced on the 14th....