HSBC withdraws Rate Matcher mortgage for new customers

30 June 2008 / by Joy Tibbs
According to reports, HSBC is withdrawing its popular Rate Matcher mortgage deal for new customers today, although it will still be available to existing customers until the end of August. The bank has also raised fees connected with the deal.

The HSBC Rate Matcher mortgage became available to new customers in April, having been open to existing mortgage customers since February. It offered to match the rate of non-HSBC customers who were coming to the end of their fixed-rate deal for a further two years.

Guaranteeing to match rates as low as 4.79 per cent, the deal was particularly attractive to homeowners whose fixed-rate mortgage deals were about to end, although relatively high fees applied.

And Rate Matcher fees have increased since the deal launched. Originally incurring a maximum charge of £4,999, the maximum fee has been raised to £7,699 although, according to the company, no one has actually paid this fee amount yet.

It claims that the increase was essential if the company is to avoid making a loss on the deal. Meanwhile, high interest surrounding the deal's launch has reportedly led to a significant increase in demand for other HSBC mortgage deals.

However, HSBC is reportedly planning to launch two discount rate mortgage deals on June 30 in place of the Rate Matcher deal for new customers. Rates are to start from 5.49 with a £999 fee.

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