RSS FeedsHSBC takes advantage of the credit crunch with fixed rate mortgages
10/04/2008
A huge plan was revealed today that Europe’s largest Bank HSBC is planning to get a big piece of the UK’s mortgage market later this year. It plans to relieve mortgage payers by taking advantage of competitor’s downfalls with the current credit crunch. The bank is planning to focus in on over a million mortgage payers whose fixed rate mortgage deals end this year. These homeowners could face huge increase in interest rates due to the current economic situation and the slowdown in the housing market.
Louise Cuming who is head of mortgages at moneysupermarket.com the price comparison website said "For the size and stature of HSBC, it's absolutely punching below its weight. This will buy them market share very quickly ... It's a bit of news that I don't think any other lender can afford to follow."
A number of mortgage lenders have pulled numerous products and increased their interest rates due to the current state of the housing market. Many high risk borrowers will be unable to take advantage of the HSBC deals when their existing deal ends due to a twenty percent deposit requirement on the value of the property.
According to a survey carried out by HBOS the price of properties fell by the highest rate last month since back in the recession of the nineties.