HSBC to freeze home loan rates

BANKING giant HSBC, the ninth-biggest mortgage lender, will announce tomorrow that it will not follow rivals in raising interest rates for its 350,000 borrowers.

The bank is the first big lender to state that it will not be responding to the Bank of England's decision to raise the base rate from 3.75% to 4%.

Abbey, HBoS, Nationwide and Northern Rock have passed on the full rise.

HSBC's mortgage rate will remain at 4.74% compared with the 6% benchmark set by Abbey and Halifax.

On a typical £100,000 repayment mortgage, this will result in HSBC borrowers paying £75 a month less than Abbey or HBoS borrowers.

It said: 'We recognise that our decision will be welcomed by mortgage customers ahead of savers. But, though we are in a period of low rates, many more people will be concerned with the increasing pressure of debt repayments.'