HSBC will allow its mortgage customers on fixed or tracker rates to secure a new deal a month earlier than usual without incurring an early repayment charge (ERC).
The bank confirmed that from today, borrowers can reserve a new mortgage rate 120 days before their current one matures instead of the previous 90 days.
HSBC said as rates are increasing, this extension could make “an important difference” in a borrower’s monthly mortgage payment.
Michelle Andrews (pictured), head of buying a home at HSBC UK, said: “In recent years we have seen and enjoyed low mortgage rates, but over the last few months interest rates have been increasing, for a number of reasons.
“As rates have recently been creeping up, we know that securing a new deal before rates potentially change again is important in terms of cost-management but also for peace of mind for our customers.
“We know that many homeowners will be looking to review their mortgage deal earlier than usual. By extending the window where customers can select a new rate with us, this could help customers during what could be a stressful and challenging time for them.”
This move follows the likes of Barclays and Natwest, with the former increasing the transfer window from 90 to 150 days and the latter extending the period from four to six months.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS