Homeowners Are Missing Out

On Low Mortgage Rates, Says HSBC

Despite the lowest mortgage rates since the 1960s, over half of the UK's homeowners could still be paying over the odds because they don't know their current mortgage rate, says HSBC Bank.

Research by the bank shows that 55% of homeowners do not know what interest rate their mortgage lender is charging them. Despite this, over 50% of homeowners are confident their mortgage rate will remain competitive for the life of the loan. HSBC is urging borrowers to check their mortgage rate.

 "Our research shows that too many borrowers are trusting to luck when it comes to mortgage rates," says Clive Wood, head of Mortgages at HSBC Bank. "If you're on a variable rate of more than 6% after June's rate change, you're paying over the odds. Don't assume that your lender will pass on the benefits of falling interest rates. Insist on a guarantee that you'll never pay more than 1% above the Bank of England's base rate - and make sure your lender calculates interest daily not annually. If you don't get the right answers, you're with the wrong lender.

" HSBC mortgage customers are guaranteed a competitive rate of interest. From 4 June, the bank's HomeBuyer variable rate will be 6% (5.75% for borrowing over £250,000). Customers also receive long-term value for money with the bank's 'price promise' - the rate will not be more than 1% over the Bank of England base rate. The bank has calculated mortgage interest daily since 1979.

Customers who would like further information on HSBC mortgages should call 0800 494999.

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