HSBC has announced that its RateMatcher guarantee, which matches the interest rate that its fixed rate mortgage customers currently pay when they roll off their existing deal, is being extended to June 30, 2008.
The guarantee was originally on offer until April 30, 2008. The RateMatcher offer is flexible, customers finishing their two year deals can choose to re-fix over one, two, three or five years at exactly the same rate.
Customers will be asked to pay a fee to match their old fixed rate, with the fee depending on the length of the fixed term and the actual rate they currently enjoy. HSBC estimates that 88% of its customers rolling off fixed rate mortgages in April will have a fee of between GBP599 and GBP999 to pay.
Martijn Heijden, head of mortgages business at HSBC, said: We’ve seen no increase in customers having trouble with their mortgage payments, however it is clear as more and more homeowners are worried about their monthly repayments going up.
Indeed, the Financial Services Authority is spending GBP2 million on an awareness campaign after discovering a fifth of borrowers are worried about mortgage payments this year.