Lending giant HSBC is poised to deal their competition a crushing blow after they announced that they would be matching rates for secured loan rate UK packages. Consumers in the UK are facing foreclosures at an unheard of rate, due in part to mortgages that are going to lose their secured loan rate and turn into variable mortgages by the end of the year. HSBC’s announcement comes at a time when 1.4 million homeowners are ready to seek a new secured loan rate UK package. Experts believe this was an incredibly smart move and should help the company demolish the competition, particularly since so many are refusing to offer their customers refinancing at lower rates.”Many homeowners are worried about their monthly repayments going up and we can help take away that anxiety,” Martijn Van Der Heijden, head of mortgages at HSBC, said in a statement. Collins Stewart analyst Alex Potter stated, “With interbank lending rates remaining elevated and long-term funding markets effectively closed, most lenders are withdrawing from the market or materially increasing prices, creating difficult step-ups in payments for refinancing customers. HSBC doesn’t have to use currently-expensive wholesale funding and is clearly now set to aggressively deploy its strong deposit-gathering franchise.”
Related reading: Secured Loan Rate UK
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