Investment Property News - Bueno Investments Limited

Banking giant HSBC has offered to match homeowners' existing fixed-rate deals, in a move which bucks the credit squeeze affecting its competitors.

The move comes at a time when many homeowners are unable find a home loan because banks are reining in lending during the current credit crisis.

HSBC, which has 3% of the market, will look to match homeowners' existing fixed-rate deals - including rates as low as 4.54% - for a further two years.

The offer, which starts on Monday for a limited period, is subject to restrictions and a fee, while borrowing will be limited to 80% of the value of the property. In line with all HSBC's mortgages, the product will not be available through brokers.

The lender, which funds the vast majority of its mortgages through retail deposits, is said to be gearing up to cope with three times its current level of business.

Collins Stewart analyst Alex Potter said HSBC's deals could be two percentage points below its peers.

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