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HSBC ups fee on rate matcher deal by more than 50%

HSBC has increased the arrangement fees for its rate matcher mortgage deals by more than 50 per cent.

The bank says the increased costs of wholesale funding prevented it from continuing the deal as it was.

Non-HSBC customers who want a £250,000 remortgage fixed at 4.79 per cent for two years will be hit with a fee of £7,699. Before the increase a remortgage fixed at 4.54 per cent drew a fee of less than £5,000.

HSBC spokesman Tim Pie says the bank has not received any applications on mortgages of that size since the fee hike, and doesn’t expect any before the offer ends for non-HSBC customers on Sunday.

He says: “Nobody’s paid it and nobody’s likely to. It’s a very high fee and there’s more chance that we’ll have a better product available for consumers.

“We kept the fee quite low for nine weeks which is remarkable considering recent market conditions, but we would have been making a loss on the product if we continued at the same rate and I don’t think anyone would expect us to do that.”

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