hails 'new option' from HSBC

Date:Monday 26th April 2010
Author: Susanna Kavka

The HSBC Split Loan Mortgage has been lauded as a new alternative for borrowers by a representative from

Andrew Hagger stated that the interest rates on offer for the new financial product are very competitive and praised the feature that allows individuals to pay their booking fee straight away and wait up to six months before drawing the mortgage.

He called it an "innovative move" from HSBC and suggested that it will appeal to people who want to pay down their mortgage quickly or receive bonus payments regularly.

Mr Hagger explained: "The beauty of this combined mortgage product is that you have the ability to fix the majority of your borrowing but at the same time can overpay without limitation on the variable rate element of your loan."

In his view, HSBC should be applauded for coming out with this style of mortgage and offering people more choice on how they want to pay off their home.

Last week, Mr Hagger claimed that the fixed-rate bonds market has taken a turn for the worse and this is bad news for savers.