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

payless

Or maybe a no tie tracker, or a deal ( likely) tracker that allows penalty free swap to new fixed ???

although if its the security of a fixed thats really important to you, then of course no one can guarantee they will be cheaper later on, and sometimes one has to take the rate premium on the chin.

jediknightwarrior

payless wrote: »

assume those telephone based WoM advisers will be directing everyone there! :-)

Yes, with the rates on L&C website, I wonder if their writing any business at the moment?

gt94sss2

According to the Telegraph:

HSBC will pay valuation and legal fees for customers in England and Wales. They will contribute £400 to legal fees in Scotland which can be higher because of the different system.

Regards
Sunil

cells

if it looks too good to be true......


wait for full terms and conditions

and for those who are saying "cherry pick" blah blah blah

they could "cherry pick"at 5% fixed quite easily, even at 5.25% an 5.5%

there is no reason for them to offer 4.6%

wait for T&C tbh

carlosatwork

In a market where the traditional 'big players' are running scared this looks like a move by the biggest to grab market share. Seems like good business sense using size and strength to take advantage. The fee will make or break but if I was asked to pay £1000 to guarantee saving £3000 over two years I'd jump at the chance - so what if it's only two years it's the saving that counts. for a lot of people this could be the difference between solvency and repossession

Cash-Is-King

Just caught a re-run of Working Lunch. A journalist on it said his team contacted HSBC and they stated they would expect new customers to shift their current account to HSBC... The plot thickens.

john_s_2

It's a bit 'back of the envelope' but I did the following calculation earlier, based on the two examples mentioned in the press release.

£120,000 @ 4.94% = £5928 x 2 years = £11,856 + £999 (fee) = £12,855

£190,000 @ 5.19% = £9861 x 2 years = £19,722 + £599 (fee) = £20,321

12,855 / 120,000 = 0.1071 (4dps) (10.7% to 1dp)

20,321 / 190,000 = 0.1070 (4dps) (10.7% to 1dp)

So maybe 10.7% of the total amount lent is to be repaid so they simply match the interest rate and the rest is the fee?

Using that formula then £250,000 @ 10.7% = £26,750

If the lowest interest rate was applied then this would raise

£250,000 @ 4.54% = £11,350 x 2 years = £22,700

So 26,750 - 22,700 = £4050

So a (max) fee of £4050? Or thereabouts. Probably wrong but I couldn't help noticing those two percentages from their examples were exactly the same.

Tiddler_2

Stoopish wrote: »

As I'm a financial journalist - I've just been sent the press release - here we go peeps........
Notes to editors:
HSBC Rate Matcher

• HSBC’s Rate Matcher offer is open to both HSBC mortgage customers and non HSBC mortgage customers. Non HSBC mortgage customers must have a fixed rate mortgage on a UK property which matures between 1 January and 30 June 2008
  
  
  Now forgive me for being a bit sceptical on this PR stunt BUT
  
  How many mortgage customers who had a fixed rate mortgage of less than 80% LTV that expired before now, will have already completed on a new rate?
  
  How many people that have a rate expiring before the end of June 2008, will have already be committed into deals (certainly those expiring in April and probably May should have already contacted their lenders/brokers to look at new deals.) I know those that haven't yet completed could change deals, but are they likely to cancel?
  
  Also no WOM broker will recommend the deal as the deal is not available to them, and so they do not have to recommend it, or even discuss it.
  
  So will they have enough qualified staff to deal with it - or will they get some help in to deal with the rush??
  
  Also reading the t/cs implies HSBC only let you overpay by up to 20% of your normal monthly payment, so if mp is £500 can only overpay by £100 in any month

owitemisermusa

Also reading the t/cs implies HSBC only let you overpay by up to 20% of your normal monthly payment, so if mp is £500 can only overpay by £100 in any month

I'd always assumed that this was a rather generous monthly overpayment limit. Are there any lenders allowing more than 20% pcm for their fixed rate products?

OMM

aliwali

Our fixed rate ends end of May and we haven't committed outselves to anything yet, but I see your point that there may not be that many people.

Although some may be willing to pay penalties to get out early but secure another low rate in this market.

Eagerly await Monday, but I fear fees may be prohibitive.
Alison