HSBC extends guaranteed re-fix deal

HSBC is extending its RateMatcher guarantee to 30th June 2008.

The deal promises to match the interest rate being paid by HSBC fixed-rate mortgage customers who are coming to the end of their terms.

The guarantee was originally made available until the end of April and has proved to be extremely popular with customers, some of whom are on fixed-rates as low as 4.55%.

The extension will be good news to some homeowners who can now escape the effects of “payment shock”.

Martijn van der Heijden, HSBC’s head of mortgages said, “We’ve seen no increase in customers having trouble with their mortgage payments, however it is clear more and more homeowners are worried about their monthly repayments going up. To ease this concern we are extending our RateMatcher offer until at least 30th June 2008.”

Adding: “This allows even more HSBC customers to smooth out any repayment hike once their fixed period comes to an end and creates a sustainable platform for homeownership.”

The RateMatcher offer allows borrowers to re-fix over one, two, three or five years.

The fee charged depends on the length of the new fixed-term and the interest rate applicable.
HSBC estimates that, 88% of its borrowers who are coming off fixed-rate mortgages in April will pay between £599 and £999.

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