Commenting on the new HSBC Mortgage Rate Matcher, Louise Cuming, head of mortgages at moneysupermarket.com, said; "Again HSBC is leading from the front. It has been clear for some time that HSBC is looking to cement its place as a serious player in the mortgage market, and the combined effect of this and the April announcement of £1bn of funding for its 'up to 90% LTV' product range, shows real commitment to this goal.

"For some borrowers this deal will represent a significantly lower rate than the SVR their current lender is offering and the six month drawn down delay offers real flexibility for many still on an existing deal. However, the maximum LTV of 75 per cent severely limits the deal's audience and for those with the equity, a hefty up front fee is likely to prove quite a deterrent. The scale of the fees in general should also not be ignored, as this may offset any benefits borrowers see from a lower rate. Borrowers need to do their sums and assess the implication of the fee and not just be pleased they are undercutting their current deal."

"Another potential issue to note is that this is a fairly complicated product and one which borrowers might need expert advice to fully understand. However the traditional sources of such advice, the intermediary market, do not have access to this deal, as HSBC's mortgage products are only available directly from the lender."

By moneysavingsupermarket.com

The Price Comparison Site

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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