HSBC Lifetime tracker

_Andy_

skyjumper wrote: »

anyone has Interest only Mortgage with HSBC Life time Tracker.

or is it that they only allow Repayment with this mortgage.

any idea?

HSBC will allow interest only up to 80% LTV (doesn't matter which rate you go for).

skyjumper

thanks Andy for that. It would be grateful if you could help me with the figures here

I'm looking for borrowing 100,000 over 25 years.

now if I take Repayment Mortgage - 650/ month
for a Interest Only - 500/ month

but i understand that the first few years, whatever i pay- most of that will go in as Interest and less would go towards reducing the actual Mortgage figure.

So if i go with interest only for first 2 years and pay lumpsum into the mortgage thus reducing the total money borrowed, i.e


500 x 24 months- 12,000 as interest and
150 x 24 months- 3400 towards the actual mortgage

will this be any good rather than paying 650 into repayment mortgage

does this make sense or am I missing something

thanks Andy again

bbf

We were approved for a lifetime tracker mortgage +0.79% with £599 fees. Everything moved quote fast - only thing left was the valuation. The guy turns up with a clipboard and room measurer and whizzes around the place in 5mins flat, during the visit he asks how much we bought it for two years ago (£150k) and what we valued it at (£165k). Call up the next day to see how it went and HSBC tell us it was valued at £150k. I rather hacked off that I told him how much it cost us, because I genuinely believe it was undervalued and badly advertised when we bought it (yay for us! ), but it had hideous decor throughout. We've redecorated 3 out of the 5 spaces/rooms too.

I wish I hadn't told him the cost! I don't believe he'd could have possibly come to that figure otherwise. HSBC refuse to engage in any argument (well, they keep saying that nobody is available to talk to us) and just say that we'll get communication via post with our options. Has anyone else had this? Is it possible that over the last two years Oct-06 to Sept-08 that the price of a 1-bed flat in central north London has effectively devalued?? I think the valuation must be wrong..... am I mad?

We need to borrow £138,000 but 90% of £150,000 is £135,000 so if they still allow us to borrow 90% we'd have to find £3k from somewhere...! :mad: Even if it had been valued at £155 it would have been fine.

Bleg

bbf to avoid exactly the situation you now find your self each time I was asked what the value of the property was now worth I always gave a very conservative figure which for me was what I actually paid for the house 4yrs ago. This way I figured that I would not be in for any nasty surprises. Even if you had not told him how much you paid for it 2yrs ago he would have been able to find out how much you paid for it quite easily.
Hold your horses all is not lost.

When I applied for mine exactly a week ago the mortgage adviser told me that the valuation might be in the form of a drive through and the surveyor may not even have to enter the house. How technical is that eh!!!!!

karie

hi bbf

the same thing happened to me - though not by quite as much - wasn't worth fighting with hsbc about as the valuation still came back higher than i had paid, however just not quite as much as i had (over)estimated in order to get the mortgage with 90% LTV. I just paid the difference myself; it's worth it as the tracker is a great deal. And also it means that you have more equity in the property and less of a mortgage. Maybe try haggle a little and put the outstanding £3K or so on a 0% credit card?

karie

bbf

Thanks for the replies. I wonder if it's possible to 'pay' this difference as a normal transaction on a credit card? Is that a daft question..?

We thought we were being conservative in our £165k estimate. The annual stats as far as I can interpret show approx 10% annual rise from Sept-07 to Sept-08 ( http://www.rightmove.co.uk/pdf/p/hpi/HousePriceIndex22ndSeptember2008.pdf )

...so I'm still a bit miffed as to how the property gets valued at the same price + the work done

manikm

im waiting to be approved....im in a similar postiion, i was gonna go with a remortgage with nationwide, they asked me how much it was worth, and silly me said 175K - guess what they valued it at - 175K - i need it to be valued at 180K or i wouldnt get it....

so with the HSBC, i said the place was worth 185K = hoping that even if they downvalue it, it might be 180K which is what i need.

fingers crossed - im not too hopeful tho i must admit

karie

bbf: yes i think so - i paid mine with debit card anyway - hsbc's solicitors just call you up on day of changeover to hsbc and you can do it over the phone

karie

Beckymarshall07

Hi HSBC tracker is a good deal but think a better deal is with share to buy - through Britannia. 5.85% it tracks at with no arrangement and valuation fee. We showed this deal to HSBC mortgage advisor who said he would waive 499 arrangement fee. Overall comparison 6% compared to HSBC 6.1%. Only snag is both parties - be it married couple or whatever have to be graduates. We're looking to go with this deal but HSBC isnt too shabby either.

bbf

I think the 0.79% +£599 HSBC deal is 6.0% overall too?

I asked Norther Rock about paying by Credit Card, it seems that you can't.