HSBC mortgage holders have home insurance frozen

05 September 2007
Borrowers with a mortgage from HSBC have the opportunity to fix their home insurance premiums for five years, the lender has announced.

HSBC mortgage customers, who do not yet have home insurance with the bank, are invited to take out a combined building and contents policy by the end of this month in order to take advantage of the special offer.

Those that do will have their home insurance premiums frozen for five years and also receive £50 cashback when the home insurance policy comes into effect.

Dennis Smith, head of insurance propositions at HSBC, said the majority of homeowners value the stability afforded by fixed-rate mortgages.

"We believe that consumers would appreciate the stability of home and buildings premiums that are frozen for five years as well," he said.

According to Mr Smith, the new deal is likely to be "particularly appealing" to first-time buyers who want to fix their outgoings as much as possible.

Mortgage borrowers concerned about the rising cost of insurance are also expected to take advantage of the HSBC home insurance offer, he concluded.

Floods across large parts of England in June led to a 300 per cent month-on-month rise in home insurance applications from affected areas, according to moneysupermarket.com.

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