HSBC's Rate Matcher mortgage deal extended

15 May 2008 / by Joy Tibbs
Fears that HSBC would not be able to cope with demand for its Rate Matcher mortgage seem to have been allayed as the lender announces it is to extend the application period for the deal.

The HSBC Rate Matcher Mortgage, which has been available to existing HSBC customers since February, has been offered to new mortgage customers since April 14 and was originally available to new customers for a five-week period.

However, the deal has proved so popular that HSBC has decided to extend it for a further six weeks to June 29. The Rate Matcher is available to UK homeowners whose fixed-rate mortgage period matures before August 31. Applicants must fit the relevant affordability criteria and have a deposit of at least 20 per cent.

Since the mortgage deal – which promises to match customers' existing fixed rate for a two-year period – was launched, mortgage sales have risen by almost 400 per cent year-on-year. The company's average new mortgage sales have totalled more than £100 million per day.

The deal has been lapped up by customers who took out their current fixed-rate mortgage deal when rates were fairly low and were facing a significant hike in fixed-rate prices when their existing deal came to an end.

HSBC head of mortgages, Martijn van der Heijden, said: "Rate Matcher has been exceptionally well received by homeowners. We successfully serviced 37,000 calls in the first four days of the offer and we are continuing to sell almost four times our normal value of mortgages.

"While the mortgage market remains challenging for borrowers, extending the availability of our Rate Matcher mortgage means we can offer many customers an alternative to significantly higher monthly mortgage payments."

The Rate Matcher will match two-year fixed rates as low as 4.54 per cent for a further two years. Lending is limited to 80 per cent loan-to-value and to a maximum of £250,000. However, fees apply and are calculated in relation to loan size and interest rate agreed.

Existing HSBC mortgage customers have the added benefit of being able to fix their mortgage for two, three or five years at their current rate.

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