View more on these topics

Rate Matcher deal branded a gimmick

Borrowers are likely to be left confused and disappointed by HSBC’s Rate Matcher range.

This is the view of Scott Coghill, director at CompliancePoint, who says the offer is too good to be true.

Coghill says the deal is open to far fewer borrowers than it seems as it limits new clients to two-year remortgages at rates no lower than 4.54% and loans of up to £250,000.

This means borrowers with higher mortgages will be forced to take out second deals with HSBC to cover the difference.

He also says the additional fees charged on Rate Matcher deals are prohibitive as over a quarter of new borrowers will be subject to extra costs of more than £1,000.

But he believes the HSBC offer is likely to stir up significant interest among the 1.4 million borrowers coming off discounted or low fixed rate deals this year.

He says: “HSBC is only helping a small number of borrowers who are eligible for this short-term deal.

“This is a marketing gimmick that will leave many panicking borrowers confused and disappointed.”

And one lender source says: “This deal isn’t as good as it seems. Our ad-vice to customers is to look beyond the headlines to the small print.

“By adding fees to the rate, this deal is far from compelling and is equivalent to what is already being offered by other lenders.”

A spokesman for HSBC says: “This offer is not a gimmick. I recommend all borrowers look at our website and use our fee calculator to ensure they have realistic expectations of fees.”

He says HSBC has calculated that the average mortgage holder coming off a fixed rate deal in the first half of 2008 is expected to pay less than £600 in fees.


AToM moves into bridging

Mortgage distributor, All Types of Mortgages is launching AToM Bridging in association with bridging and property specialists GB Finance.Together they are able to offer not only the short term funding to secure a property, address a credit or property related issue, but they can also offer the longer term funding solution, whether it be for […]

Platform integrates with Enterprise

Platform has completed the first stage of its technology integration with broker services provider Enterprise Group.

GEMHL slashes B2L rates

GE Money Home Lending has cut the rates on its buy-to-let range.Its two and three-year fixed rate deals have been cut by 0.3% and its five-year fixed rate product has been reduced by 0.45%. GEMHL has also cut its buy-to-let tracker rates from 6.94% to 6.45%.The completion fee on loans of up to 150,000 is […]

At last, an effort to resolve the crisis

Although the weather has been topsy-turvy for the past six months, a permanent storm cloud has been hanging over the mortgage market.

Could Proptech revolutionise construction?

By Rebecca Murphy, relationship manager, LendInvest  The construction sector offers enormous potential when considering the implication emerging technologies could have on both existing processes and final results. While the completion of an entirely 3D-printed office block may be ‘sexier’ news than a new smart toolbelt that tracks the wearer’s location on site, each area of development […]


News and expert analysis straight to your inbox

Sign up