HSBC enjoys success with the rate matcher

In April HSBC launched a new mortgage product in the form of the Rate Matcher mortgage, which offered to match the rate of eligible homeowners who were due to come off cheap fixed rate mortgages and were looking for a suitable alternative. The offer was launched for a five week period, and certain conditions such as a 40% deposit were put into place.

However, the Rate Matcher has proven so popular that HSBC have decided to extend the offer, having seen its monthly mortgage sales quadruple for the month thanks to the take up of this new mortgage product by people keen to get their hands on low fixed rate before they end up being pushed onto their lenders’ costly standard variable rate.

After the launch of the mortgage lending by the HSBC leapt to £2.5 billion for the months, and it was estimated that the bank had secured a 12% share of the mortgage market. Officials claimed that mortgage lending levels had soared to four times the usually level, with the bank enjoying around £100 million worth of mortgage sales each day.

Originally HSBC had less than a 4% share in the mortgage market, but the popularity of this product has seen their share triple. Many experts had predicted that the Rate Matcher would be very popular amongst those due to come off cheap fixed rate mortgages.