HSBC matches rivals’ fixed-rate mortgages
April 10, 2008 by admin
Filed under News, News-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.
Consumers unsure of rate change impact
November 28, 2007 by admin
Filed under News, News-Mortgages
The majority of Brits are unclear on the value of a one per cent mortgage rate difference, it has emerged.
Research by Nationwide Building Society has found that 75 per cent of people in the UK do not know how much real difference this would make to their mortgage, which could be up to £4,000 on a five year fixed rate mortgage deal.
Meanwhile, when told to compare two five year mortgage deals to compare, the largest proportion of respondents (28 per cent) said there would be a difference of £500 to £2,000 between a £120,000 mortgage with interest of 5.6 per cent and one with interest of 6.6 per cent.
In fact the difference would be £4,000, which was correctly identified by just 23 per cent of respondents.
“People’s lives are busier than ever in the run up to the festive season and, as a result, they may be less inclined to shop around for the best deal. The temptation may be to take a slightly higher rate as an easier, less hassle option,” said Matthew Carter, divisional director for mortgages at Nationwide Building Society.
