New HSBC Loan product Proves To be Popular
We reported last week on how the banking giant HSBC has just launched a new homeowner loan product with a particularly low interest rate of just 1.99 per cent, making it one of the cheapest loan products on the market at the present time.
Although the loan deal carries with it a large initial arrangement fee and only offers a maximum loan of 60 per cent loan to value, HSBC have reported that they have received a record number of loan applications since the product was launched and that last Thursday was the busiest day in the bank’s history for new loan applications.
The new range of homeowner loan products from HSBC is clearly designed to attract as much new business as possible and pull potential customers away from other banks and building societies and it would seem that their plan is working. A number of other lenders announced last week that they would also be reviewing their product range and introducing new cheap loans, but the majority have said that they will not be able, or do not intend to match the latest offering from HSBC.
In recent months, the average shelf life of a new homeowner loan product has been extremely short indeed, with some loan deals only being available for a couple of weeks or so before the lender withdraws the product.
Although they have not given any deadlines or timescales, it will be interesting to see just how long HSBC can keep this new product range on the market before they change their loan deals and with potential borrowers becoming well aware of the short term shelf life of new homeowner loan products, it is little wonder that people are rushing to get their applications in and approved while they still can.
