Wednesday, Sep 02, 2009
HSBC deal raises hopes of mortgage price war
Times online: Original news
Britain's biggest bank lays down the gaunlet to rival lenders with a new discounted deal at 1.99 per cent .
Wooohoo- bring on the house price bull run.
Posted by kp @ 01:01 PM (2155 views) Add Comment
24 Comments
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1. techieman said...
Suck em in!
2. Kp said...
I am going to go long one or two small properties now. I would rather have my money yielding 7% from property renting rather than 0.25% in the bank. Def. with HSBC throwing the gauntlet, other lenders would ve to follow the suit. I am quite chuffed about it now!!
3. mark wadsworth said...
Hurray! More free advertising for the HSBC!
4. paul said...
"Wooohoo- bring on the house price bull run."
Welcome to housepricecrash.co.uk, kp.
I take it you were on your knees before an altar when you wrote that? Net lending is falling rapidly, that particular mortgage requires the buyer to stump up 40% of the purchase price (wonder why that might be?) and there won't be any followers from the other banks.
Anything more to say, "kp"? Didn't think so.
5. bluebeach said...
"The two-year deal, which is available from today, requires a deposit of 40 per cent. It also has a hefty fee of £1,199. Mortgage brokers have also warned that the discounted deal is pegged the HSBC's standard variable rate (SVR), rather than the base rate, as with popular tracker mortgages."
A new customer that will be as rare as an honest Member of Parliament
6. Kp said...
I am sitting comfortable here with my cash now diverting into the property market. If you miss the boat, you ll live to regret it. Go on son, buy that property!!
7. 51ck-6-51x said...
techie
- This is not available to FTBs, only remortgaging customers, their best for FTBs is SVR-0.05% ( cur 3.89% ).
bluebeach
- new customers are not rare when the deal is the best on the market for those being marketed to ( people who are currently on another SVR and have 40%+ of equity and good scores.
8. it_is_going_with_a_bang said...
With a 40% deposit , £1,199 fee & a perfect credit score.
It is just taking the cream off the top of the milk.
Can't see this making any difference.
9. jack c said...
Nothing new in this strategy from HSBC (think back to their re-mortgage rate matcher) If there is strong demand chasing the headline 1.99% deal it will be interesting to see if HSBC can manage the volume or whether the offer gets oversubscribed and then pulled from the market in a matter of weeks.
10. uncle tom said...
Looks like HSBC have already pencilled in a rise to their SVR..
11. jack c said...
Uncle Tom with his 'Suspicous Mind'
"Were caught in a trap, I cant get out.................."
12. will said...
After 2 years the interest rates may easily be above 5%. That'll double your monthly payments.
13. Fools said...
"Wooohoo- bring on the house price bull run."
"Wooohoo- bring on the house price bull run."
"Wooohoo- bring on the house price bull run."
14. jack c said...
You could be onto somthing here Will as Halifax have just launced 2 new fixed rates @ 7.29% and 7.49% respectively.
15. Smiling said...
why do bears #### in the woods?....cos they got no houses!
16. This comment has been removed as it was found to be in breach of our Blog Policies.
17. techieman said...
666 fair point - although since it needs a 40% deposit and has a large fee and only lasts for 2 years (so the fee is - depending on the loan size) a fair % anyway, i cant see a big take up all in all a bit of marketing. Maybe to "suck them in" from other lenders?
18. jackas said...
Refreshing to see a bull admit it simply boils down to cheap money.
No other reason houses prices did what they did.
19. phdinbubbles said...
"Britain's biggest bank lays down the gaunlet to rival lenders with a new discounted deal at 1.99 per cent .
Wooohoo- bring on the house price bull run."
You've obviously never seen what they do to the bulls after they've been run at pamplona.
20. mander said...
And so the rest of the banks will have to lend to less credit worthy people in order to make their money...
21. alan said...
A bit of cherry picking and a lot of good advertising, I'd say!
This is a "special offer". I wonder how long it will last? I'm betting it gets pulled well before Christmas.
22. techieman said...
jackas ... "Refreshing to see a bull" end of sentence!!
23. phdinbubbles said...
@smiling
"why do bears #### in the woods?....cos they got no houses!"
Nope, the thing is I already have one you see - and it's very useful - it keeps the rain off my head amongst other things - and when prices drop 50% I'll be able to buy myself a bigger one for half the price difference - and keep more rain off my head. Give me your details and I'll look forward to visiting your office in a couple of years and you can show me round a few places. Of course I could be wrong - it might take one or two years longer, but I'm happy to wait. Keep smiling.
24. watching with amusement said...
@KP 6 Missing the boat is a worry, unless it happens to be the Titanic...