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HSBC hikes mortgage rates on market turmoil

Thu Sep 25, 2008 10:58am EDT

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LONDON, Sept 25 (Reuters) - UK bank HSBC Holdings (HSBA.L) is hiking the cost of its fixed mortgages from Friday in reaction to credit market turbulence, in a move widely expected by analysts.

HSBC, the UK's ninth largest lender, said it would increase the interest rate on its range of fixed rate products to 6.27 percent from 5.97 percent, following in the footsteps of the Yorkshire Building Society on Monday.

Fees will decrease to 499 pounds from 799 pounds, HSBC said, and loan to value requirements remain unchanged.

Turmoil in the markets last week led to a tightening of wholesale funding and a jump in the interbank lending rates.

(Reporting by Lorraine Turner; editing by Elaine Hardcastle)



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