Interesting development in the Mortgage Market?

[CoverItAll]

Mortgage Strategy has announced "HSBC is about to launch cut-price deals for borrowers about to remortgage in a move that could strike a hammer blow to brokers.

The bank will launch on Monday a range, entitled Rate Matcher, which will match existing cheap fixed rate deals.

The bank says borrowers facing the shock of potentially higher repayments at the end of their fixed rate mortgage period can now match their old rate by switching to HSBC.

The bank is targeting some of the 1.4m mortgage borrowers who will remortgage from cheap fixed rate deals this year.

HSBC is set to exploit the gap in competitive deals left in the market after the serial product re-pricing by lenders of recent weeks.

HSBC, which deals directly with borrowers and could cut out customers' needs to use brokers to find cheap products, may offer fixed rates as low as 4.5%.

Martijn Van Der Heijden, head of mortgages for HSBC, says: “Many homeowners are worried about their monthly repayments going up and we can help take away that anxiety.

"Rate Matcher helps customers plan budgets over the medium term and eases the shock of seeking new borrowing when old rates expire. We're pleased to be in a position to help."

[Phil]

With having brief dealings with the HSBC bank in the past I would be wary of dealing with them because as soon as things go wrong they will rip you to shreds,Poisened chalis me thinks.

P

[IFA Law]

Great news for borrowers - it will be interesting to see how long they will be able to manage to match the demand before having to pull the plug.

[joh71262]

And no doubt it's the existing borrowers that will end up footing the bill if the rates go down with the BoE and are not reduced by the bank. Nothing is for free and someone, somewhere will pay for it.

[Emily]

There is £999 arrangement fee and it is an offer for 5 weeks only to get everyone rushing in. Still it is a deal when none exist.

I have also heard from Moneymail that the Banks are deliberately not passing a majority of the reduced base rates on mortgages despite the BOEcuts from Dec 2007. It is said they are desperate in protecting their profit and boneus at our expenses

There is no reedemable feature in high street banking anymore.

[Skippy]

I'd rather live in a tent than have anything to do with HSBC!

[ianmillington]

Could it also be a case of "those with adverse credit need not apply"?

[sjw]

the lunchtime news have just said that you need 20% deposit which wipes out a lot of people me thinks and excellent credit history , not sounding as good as it first looked. sue x

[rayb]

I think they have done the right thing wiping out all the 100 - 125% mortgage deals they were bound to go wrong at some point. It makes sense to have a deposit and a lower mortgage. Once my IVA is concluded (3 years) to go I will certainly be saving and saving so I have less to pay and no credit of any kind other than a mortgage

[Adam Davies]

Hi
I agree with Ian,you will almost certainly need a spotless credit history to be accepted.
I am sure that HSBC will be inundated with application so can afford to be choosy
Regards

[size5]

Fair point, those in most need, at the so called lower end of the market will gain no benefit from this at all, but I take my hat off to what is a very clever, headline grabbing way of commandeering more market share of the prime market for HSBC.

Regards.

[chris.g]

It sounds as if it's going to be the one's that can afford the increase in mortgages that are going to be the ones to save, again!
Saying that it would be very foolish for HSBC not to be choosy, I don't think any creditors money is safe at the moment!

[MelanieGiles]

They will cherry pick the best applicants (Andrew Graveson's quote not mine!) and those with adverse credit ratings need not apply.

[ray_a]

"Basically keep out of the fire" comes to mind!

A few tough years before it all calms down!