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HSBC charges for mortgage advice

Tuesday, April 07, 2009

Source: Catherine Deshayes

HSBC has announced plans to offer potential mortgage customers an impartial mortgage advisory service, for which it will charge £150...

The bank is recruiting mortgage brokers to carry out the service in its branches, and customers will be charged even if an HSBC product is recommended.

The advisors will be known as Mortgage Matcher consultants, and customers will be charged £150 for a meeting with one, where they will receive information about products from rival lenders as well as those from HSBC, and advised on the best deal available for their individual needs.

Even those borrowers who sign-up to HSBC or first direct products will not be exempt from the fee, nor will they be offered a reduced rate.

The Market Hill branch located in Cambridge launched the service on Tuesday (31 March), and will trial it for the next seven months. HSBC plans to launch the service in an additional 19 branches across London, the South East and Wales over the next three months. If successful, the advisory service will be rolled out across the UK.

Andy Mielczarek, Head of Retail Products at HSBC, said, "We remain totally committed to funding our own mortgage business, with £15 billion available for 2009 - double what we lent in 2007."

He added, "However this service offers our customers who are less confident in deciphering the right mortgage deal for themselves, another reason to talk to us and gives us more options to help them."

Source: www.hotproperty.co.uk