HSBC Bank Malta plc has launched a “Home Loans Service Promise”: a customer charter for its home loan products, whereby failure by the bank to meet the service proposed qualifies the customer to claim “Lm5 max”.

The service promise covers the provision of a loan decision within 48 hours and the timely issue of approval letters, appointments for deed of loan and loan withdrawals.

Personal financial services head John B. Hackett explained, “Buying a home is a stressful process.

“At HSBC we aim to ease that stress by providing our customers with a clear, unambiguous promise on what level of service to expect from HSBC Bank. We’re confident of the service we provide but if we fail, then we’ll give the customer a Lm5 max credit… as simple as that. We’re pleased to have become the first Maltese bank to guarantee the service levels that customers should expect in this important life transaction.”

HSBC has also announced a reduction in its home loan variable interest rate for loans of up to Lm35,000 for the first year. These loans will now benefit from a special rate of 3.7 per cent on the first Lm25000 and 4.75 per cent on the remaining balance. After the first year, the loan will revert to the standard rates of 4.5 per cent and 5.25 per cent respectively.

Notwithstanding the recent Central Bank change in base rate, HSBC also reconfirmed that its fixed interest rates remained unchanged, at 4.25 per cent for two years, 4.5 per cent for three years and 5.35 per cent for five years.