HSBC notes change in mortgage market

Date:Tuesday 3rd August 2010
Author: Max Freedman

There has been a significant shift in the home finance market in recent years, according to an HSBC mortgages expert.

Martijn van der Heijden, head of mortgages at the lender, made his remarks after the firm published a study comparing the rates offered by brokers and those achieved by going direct to a financial institution.

The research showed that - over the past two years - the cheapest direct mortgage has been 0.47 per cent cheaper than a comparable product from brokers.

Mr van der Heijden suggested this is indication of how the mortgage market has changed and advised consumers that they may need to go elsewhere to get the best deals.

"With loans available from brokers failing to beat direct lenders' lowest deals for over 90 per cent of the last two years, customers can no longer rely on brokers," he said.

This week, HSBC announced the launch of a new five-year fixed-rate mortgage, which is available from 3.95 per cent interest.