HSBC may deliver hammer blow to brokers

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 on Monday launch 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 come off cheap fixed rate deals this year.

HSBC is set to exploit the gap in competitive deals left in the market after the serial product repricing 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 home owners 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.”