HSBC Is Back with Rate Matcher

HSBC, one of largest UK lenders, has announced on Monday, June 1st, that it will re-introduce its popular mortgage deal called “Rate Matcher”. The deal is supposed to equal or even beat the current rates that borrowers are on by offering a fixed interest rate of 2.49%. Despite the fact that the majority of mortgage brokers have welcomed the bank’s move to provide homeowners with lowered interest rates, they have criticised the re-launch of the Rate Matcher deal because of the extremely high cost that is associated with it. The fee for this 2-, 3-, or 5-year fix can reach up to £4,699. They also add that the high fee will make borrowers hold up the HSBC’s offer against other deals available in the open market. The re-introduced Rate Matcher is targeted at borrowers stuck in the banks’ SVRs and at those, whose current fixes or trackers are coming to an end. The deal, which was first launched in April 2008, allows bank’s clients to borrow up to £250,000 given that they provide a 25% deposit. The larger the borrower’s deposit is, the lower the interest rate will be; the lowest interest rates are secured for those with a 40% deposit. Clients should be aware of the fact that the interest rate on the deal is calculated on the basis of the amount borrowed, amount deposited, and the fee paid. The HSBC bank promises to launch a Rate Matcher calculator on Monday, June 8th. The re-launch of the Rate Matcher deal is another step in a series of mortgage announcements from the bank. Earlier this year, HSBC claimed that it will lend up to £1 billion to borrowers with a 10% deposit. On Monday, June 8th HSBC will also announce the launch a brand new 7-year fixed mortgage deal at 4.98% for borrowers with a 25% deposit. The deal, characterized by a maximum loan size of£500,000, will have a £999 fee.