Mortgage brokers are not concerned HSBC’s directly sold rate matcher offer will lose them business despite many believing it is a good deal.
HSBC has been matching borrowers rates since February 1 but this morning it extended the offer to all UK homeowners for five weeks from April 14. The bank will match borrowers’ rates, as low as 4.54 per cent, for a further two years but the deal is only available at its branches, not through brokers. The bank says 72 per cent of customers will pay a fee of £999 or less.
Baronworth director Michael Brill says: “This is a very good deal and the fee is quite competitive.”
But he believes his clients will still see the value in having an adviser search the whole market.
He says: “I’m not worried the deal will lose me business. A lot of people will not realise this offer is available and they also won’t know whether another lender will start doing a similar thing next week and another the next. I believe they’ll still come to brokers to find out who is the most competitive because it won’t be HSBC for everybody.”
He says brokers should still recommend HSBC to their clients if it does turn out to be the best offer and simply charge a fee for searching the market.
Need An Adviser.com chartered financial planner Ashley Clark also doubts brokers will be threatened by the deal.
He says: “HSBC are not playing to the intermediary’s client. They are playing to people’s fears and if people are scared they may go for this product whether it’s a good deal or not. But do I really think one product offered by one bank will impact on my business? No. I believe if an intermediary has a good relationship with their client this deal will not lose them business.”