HSBC offers to match existing mortgage deals

HSBC is making its Rate Matcher mortgage available to all UK homeowners, subject to clear affordability criteria and for a limited period only.

This means borrowers facing the shock of potentially higher repayments at the end of their fixed-rate mortgage period can now match their old rate by switching to HSBC.

HSBC has been successfully helping existing customers stabilise their future mortgage commitments with Rate Matcher since 1 February.

For the next five weeks, non HSBC customers will be able to apply for Rate Matcher with a promise to match rates as low as 4.54 per cent for a further two years. The bank will accept applications from customers whose fixed-rate product is due to mature before 30 June 2008 and where borrowing is limited to 80 per cent of the value of the property (LTV). The maximum loan under Rate Matcher terms will be £250,000. Like all HSBC’s UK mortgages, it will not be available through brokers, and we advise customers to visit their local HSBC branch.

Customers will be asked to pay a fee to match their old fixed rate. The size of the fee will depend on the interest rate and size of loan requested, although HSBC estimates that almost three-quarters of customers (72 per cent) will pay a fee of £999 or less. From next week borrowers can use the bank's fee calculator at hsbc.co.uk to check the fee payable on their mortgage.

"Many homeowners are worried about their monthly repayments going up and we can help take away that anxiety," said the bank's head of mortgages, Martijn Van Der Heijden. "Rate Matcher helps customers plan budgets over the medium term and eases the shock of seeking new borrowing when old rates expire. We're pleased to be in a position to help."

Customers with loans larger than £250,000 can still make use of their Rate Matcher allowance and top up with another HSBC mortgage for the rest of their required funds. Customers can also choose from HSBC’s other offers as existing offers may work out more suitable. From April 14th HSBC mortgage offers will include a 5 year fix at 5.39 per cent with a fee of £999, a 2 year discount mortgage at 5.43 per cent with a £999 fee and a remortgage lifetime tracker at 5.73 per cent with a £599 fee.

HSBC’s Rate Matcher offer is even more flexible for existing HSBC mortgage customers, they can choose to re-fix over two, three or five years at their exact same rate.

Customers can visit HSBC branches in advance of April 14th to reserve a time to see an HSBC Mortgage Manager in order to discuss how our Rate Matcher offer may benefit them. From April 14th customers can apply for a Rate Matcher mortgage from any HSBC branch in the UK.