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HSBC Rate Matcher hides withdrawal of best product

Wednesday 16th April 2008

Much of the publicity about HSBCs mortgage range has recently focused on the introduction of the financial services providers Rate Matcher product.

This promises to match existing fixed-rate charges for homeowners who would otherwise have to remortgage at a higher rate.

Such a move may sound tempting to many people in light of the elevated base rate conditions and widespread warnings that repossessions could rise as a result of decreased affordability.

For example, a £120,000 mortgage fixed for two years at a rate of 4.94 per cent may be arranged for a fee of £999.

A two-year £190,000 fixed rate of 5.19 per cent may also be obtained for £599.

Head of mortgages at the bank Martijn Van Der Heijden says: "Many homeowners are worried about their monthly repayments going up and we can help take away that anxiety."

But for those looking to take out a new mortgage - rather than match an existing deal - the picture may not be so rosy.

The Sunday Times notes that "the best fix available with HSBC outside of its rate-matcher range is 6.23 per cent".

Although such a mortgage is available with no arrangement fee, the publication claims that cheaper alternatives are available from other providers.

Prior to the launch of Rate Matcher, Yahoo! Finance added that those looking to borrow 90 per cent of the value of a property should approach HSBC quickly.

The online news service predicted that the bank would withdraw its 4.99 per cent package, leaving those looking for such a loan-to-value ratio "high and dry".©

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