Mortgage rates cut by HSBC to help consumers

Officials from the High Street banking giant HSBC have said that the lender has cut some of its mortgage interest rates in a bid to help struggling consumers in the current financial climate. One official from the firm said that it had cut rates in order to try and help those that were struggling with their finances.

The claim was made by Martijn van der Heijden, head of lending at the company, and came after the banking giant decided to cut the interest rates on all of its 80 percent loan to value mortgages, with cuts of up to 0.4 percent on these mortgage loans. This includes a number of two and five year fixed rate mortgages, a discount mortgage that comes with a £99 fee, and two tracker mortgages.

Hejden said that many people were facing difficulties in the current financial climate, and these mortgages were aimed at helping such people. He said that because the bank had cut rates in this way it would allow more people that had a limited budget to apply for a mortgage loan with HSBC.

At present many consumers have little choice when it come to finding the best lender, and this is due to the many restrictions that lenders have in place as well as the higher rates that are charges on some mortgages, making it difficult for some to afford a mortgage loan.

Hejden said: “Our 2.79 per cent discount mortgage is designed to help homeowners, many of which are facing a tough time.” He added: “As research shows more and more lenders are now reserving their lowest rates for either existing customers or those happy to deal with them directly.”

Tags: bank, mortgage, giant, Hejden, finance, consumers