View more on these topics

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.”



News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm