Wednesday, September 2, 2009

HSBC deal raises hopes of mortgage price war

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 (2510 views)
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23 thoughts on “HSBC deal raises hopes of mortgage price war

  • Suck em in!

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  • 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!!

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  • mark wadsworth says:

    Hurray! More free advertising for the HSBC!

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  • “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.

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  • “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

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  • 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!!

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  • 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.

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  • it_is_going_with_a_bang says:

    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.

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  • 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.

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  • Looks like HSBC have already pencilled in a rise to their SVR..

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  • Uncle Tom with his ‘Suspicous Mind’

    “Were caught in a trap, I cant get out………………”

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  • After 2 years the interest rates may easily be above 5%. That’ll double your monthly payments.

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  • “Wooohoo- bring on the house price bull run.”
    “Wooohoo- bring on the house price bull run.”
    “Wooohoo- bring on the house price bull run.”

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  • You could be onto somthing here Will as Halifax have just launced 2 new fixed rates @ 7.29% and 7.49% respectively.

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  • why do bears #### in the woods?….cos they got no houses!

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  • 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?

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  • Refreshing to see a bull admit it simply boils down to cheap money.

    No other reason houses prices did what they did.

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  • “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.

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  • And so the rest of the banks will have to lend to less credit worthy people in order to make their money…

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  • 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.

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  • jackas … “Refreshing to see a bull” end of sentence!!

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  • @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.

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  • watching with amusement says:

    @KP 6 Missing the boat is a worry, unless it happens to be the Titanic…

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