Mortgages Uncovered

In a bid to take on the mortgage brokers, HSBC is now trialing a new “whole of market” full mortgage and finance advice service which is available to their customers throughout its branches in the UK.
The bank is set to charge their customers £150 to speak to an HSBC ‘Mortgage Matcher consultant’, who is a person that has to offer completely impartial advice on the markets best mortgage deals including those from the bank’s rival lenders.

HSBC bank, who is now the sixth largest lender throughout the UK has recently teamed together with John Charcol, mortgage broker, to develop this unique scheme.

Peter O’Donovan, head of mortgages at Bestinvest, a financial advisor, said: “This is a threat to brokers, who have already been hit by customers choosing to get mortgages straight from lenders.”

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. 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.

Melanie Bien, of Savills Private Finance, a broker, said: “This appears to be a natural step for HSBC, but other lenders, such as Bradford & Bingley, have tried, and failed, to offer whole of market advice in branch in the past.”