HSBC is offering its new and existing mortgage customers the chance to freeze their home insurance premiums for five years, in the wake of rising insurance costs following the recent flooding across England.

<p>The bank has announced that all new-to-bank and existing mortgage customers who take out a combined building and contents policy with HSBC before September 30, 2007, will benefit from a freeze on premiums for five years. In addition, customers will also receive GBP50 cash back once the policy has commenced. <br /><br />Dennis Smith, head of insurance propositions at HSBC, said: The vast majority of home owners favor the stability of a fixed-rate mortgage, and we believe that consumers would appreciate the stability of home and buildings premiums that are frozen for five years as well. <br /><br />This will be particularly appealing to first home buyers looking to fix their costs as much as possible, and mortgage customers who are concerned about the rising cost of insurance, especially following the recent floods, Mr Smith continued.</p>