HSBC matches rivals’ fixed-rate mortgages

Mortgage customers concerned about rising interest rates can breathe a sigh of relief as HSBC is extending its mortgage Rate Matcher offer to all UK homeowners.

Non-HSBC customers will be able to apply for the deal, available for the next five weeks, promising to match rates as low as 4.54 per cent for another two years.

Under the deal, which was originally only available to existing HSBC customers, the maximum loan will be £250,000.

“Rate Matcher helps customers plan budgets over the medium term and eases the shock of seeking new borrowing when old rates expire,” commented head of mortgages at HSBC Martijn Van Der Heijden.

Customers will have to pay a fee which will depend on the interest rate and size of the loan requested, however the bank expects that 72 per cent of customers will not pay more than £999.

Many consumers may want to take advantage of this deal since the average fixed-rate mortgage deal is currently around 6.2 per cent, with very few deals below five per cent.

Tags: investment, mortgage rate, rising interest rates, term, rivals, HSBC Martijn Van, maximum, Business Finance

Future Mortgages slashes loan-to-value ratio by 20%

Specialist lender Future Mortgages plans to slash the maximum loan-to-value ratio by up to 20 per cent today for its prime and near-prime products.

Future Mortgages has reviewed its lending due to soaring demand for mortgages as well as daily price increases from competitors, resulting in the decision to tighten lending criteria.

The latest research from the Abbey Mortgage Index confirms that mortgage lenders can expect a high demand for five-year fixed rate mortgages, despite recent reports that the mortgage market is declining.

Additionally, the number of people who would choose any type of fixed mortgage product has risen from 35 per cent last month to 53 per cent this month. However tracker mortgages are less popular with only five per cent of respondents opting for them compared to 12 per cent last quarter.

Commenting on Future Mortgages’ decision, a spokesman said: “We see these actions as prudent and a strong indication of our desire to retain a market position in chosen sectors while simultaneously maintaining our servicing proposition in these challenging times.”

Tags: loan, tracker mortgages, maximum, tracker, month, Abbey Mortgage

Changes to Isas will benefit consumers say experts

The changes to Isas anticipated to occur in April of this year have been welcomed by industry experts.

Robin Keyte, a director with the financial services firm Towers of Taunton, said that getting rid of the definition of mini and maxi Isas should benefit both the customer and the Inland Revenue.

The increase in the maximum amount a person is able to invest in an Isa in a tax year, from £3,000 to £3,600 should help encourage saving as well as rise in line with inflation, he added.

“You could also say that with the credit crunch digging in, it’s very timely, because people want to reduce their spending. The timing is good,” Mr Keyte said.

Removing the ‘Personal Equity Plan’ (PEP) description and treating the funds as Isas should also help simplify the situation for the consumer.

He said that there’s “no point” in keeping the name different, due to the amount of similarities between the two products.

According to figures released in November 2007 by HM Revenue and Customs, the amount of money saved in Isas has now reached £208 billion.

Tags: services firm towers, maximum, personal, equity, line

No Claims Discount – What Is It?

A No Claims Bonus is basically the same as a No Claims Discount, but technically one results in the other. Either way, they make a heck of a difference to how much your car insurance costs. Read more

Tags: car insurance, hefty wedge, option, price, no claims discount, insurance policy documents, maximum