HSBC is planning to launch a “Rate Matcher Mortgage” which would benefit many borrowers that own fixed rate mortgage. With this scheme, those borrowers whose fixed-rate mortgage is due to end before 30 June 2008 can continue the deal with a fresh loan from HSBC on the same rate for another two years. But, the maximum loan size would be less than 80 percent of the value of the property and the maximum loan amount would be 250,000 pounds. The minimum rate of interest that HSBC would accept is 4.54 percent and the deal is fixed for two years.

On the other hand, the cost of the agreement fee varies with the size and interest rate of the loan. The borrowers may have to pay a gigantic 4,999 pounds if the loan amount is really high and the interest rate that they have on the existing mortgage is less than 5 percent. But, it is estimated that nearly 3/4th of the customers would pay only 999 pounds towards the agreement fee. If any borrower wishes to get this deal, they have to visit the nearest local branch of HSBC for a quote as this deal is not offered through brokers.