This guarantee will enable HSBC mortgage customers to escape the worst effects of mortgage rate shock that the Bank of England expects 1.4 million homeowners to face over the coming months. HSBC’s RateMatcher offer will be available to the bank’s borrowers rolling off fixed rate deals until at least the end of April 2008.
HSBC has reported that its 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 over 93% of its customers rolling off fixed rate mortgages in February will have a fee of less than GBP500 to pay. Customers can also choose from HSBC’s other offers.
Martijn van der Heijden, head of mortgages unit at HSBC, said: The Bank of England has warned debt repayments as a proportion of household income are at a 15-year high, and with 1.4 million homeowners facing steep increases in mortgage payments in 2008, this stretch is likely to become worse. To remedy this, HSBC’s RateMatcher offer is designed to smooth out the ups and downs of moving between mortgage deals and create a sustainable platform for homeownership.
