HSBC Cut Mortgages
Martijn van der Heijden, head of HSBC’s loans has recently stated that the banking giant has decided to reduce interest rates by its range of mortgages in an attempt to provide financial assistance to some of its customers.
Rates cubic feet of bank interest on loans of 80 percent to value (LTV) range of up to 0.4% in a bid to help customers lower their monthly outings.
Martijn van der Heijden, said: “Our 2.79 percent discount mortgage is designed to help homeowners, many of whom face a difficult time.”
2.79% of your mortgage was one of several products at reduced prices. Others include two to five years fixed rate mortgage and two tracking mortgages. All mortgages only require a reserve of £ 99 which is a strongly compared with other banks and building socities that are charging up to 1.999 pounds in fees.
HSBC expects to reduce its tariffs will help customers who are struggling in the lowest income in the economic recession that was triggered by the credit crunch two years ago.
Recently, the bank was recognized as the largest provider of mortgages in the UK direct. One in four direct mortgages are now provided by HSBC. The Council of Mortgage Lenders reported that HSBC HSBC issued nearly 10 percent of all new mortgages in the United Kingdom which represents an increase of three percent between 2000 and 2007.
The World Bank was one of the new lenders who weathered the financial crisis and left in a stronger position than its competitors. Industry experts have attributed this to the bank to stick to traditional methods of banking to sustain a high rate of loan savings and loan strict criteria, but without restricting the amount it provides to its customers because it still has a higher level to mean acceptance of mortgage applications.
Martijn van der Heijden, head of mortgages at HSBC, said: “As research shows more and more lenders are reserving their lowest rates, either for existing customers or happy to deal with them directly.”
Research web site price comparison reflected HSBC mortgage direct thats 93 percent of the best mortgage rates offered in the market over the past two years. Some suggest that this is another sign that banks and building societies are moving away from mortgage brokers to offer customers cheaper mortgages, but others worry that customers are missing out on valuable professional advice when they go straight to a lender.
HSBC believes that the sale of mortgages directly to customers instead of going through a mortgage broker is the best way to provide great deals to your customers, because they think they are better able to sell mortgages.
Sarah Gwilt, an Independent Financial Adviser expressed his concern that the research did not reflect the value of independent mortgage advice and direct many HSBC customers anyway.
Sarah said: There are many intermediaries who, like me, recommended the likes of HSBC, so my belief is that, if intermediaries were not there, the share market banks would be lower.
She went on to say: “I am a firm believer of getting advice from the whole market. Because they are the cream of the business, banks can offer good rates but that does not mean you always have the best deals. There intermediaries that can offer better products. “