HSBC’s extends ‘RateMatcher’ for existing fixed rate customers

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%.

Martijn van der Heijden, HSBC’s head of mortgages said, “We’ve seen no increase in customers having trouble with their mortgage payments, however it is clear more and more homeowners are worried about their monthly repayments going up. Indeed, the Financial Services Authority is spending £2m on an awareness campaign after discovering a fifth of borrowers are worried about mortgage payments this year.

“To ease this concern we are extending our RateMatcher offer until at least 30th June 2008. This allows even more HSBC customers to smooth out any repayment hike once their fixed period comes to an end and creates a sustainable platform for homeownership.”

Many HSBC customers will be coming to the end of two, three and five year fixed rate mortgages over the next four months, with rates from at low as 4.55 per cent. The RateMatcher offer is completely flexible, customers finishing their two year deals can choose to re-fix over one, two, three or five years at exactly the same rate.

Customers will be asked to pay a fee to match their old fixed rate, with the fee depending on the length of the fixed term and the actual rate they currently enjoy. HSBC estimates that 88 per cent of its customers rolling off fixed rate mortgages in April will have a fee of between £599 and £999 to pay.

All homeowners whether existing HSBC customers or not can choose from the bank’s latest other mortgage offers. These include a market leading 5.19% variable rate discounted by 1.31% off HSBC’s standard rate for two years, and a 2 year fixed rate mortgage of 5.46%, both with a £999 fee.