HSBC Lifetime tracker

boinging_2

johnnyboyz wrote: »

What are Premier Customers?
People who have large deposits with HSBC or something else?

Premier is free for customers with £50K plus in savings or a £250K+ mortgage and £70K+ salary...

I believe you can also pay a monthly amount to be a premier customer, but then the Plus account is a similar set up.

karie

sorry - you're right - the one i was referring to was the Plus account

jamied100

I recently remortgaged with HSBC at the 5.99 lifetime tracker. No fees, no legal costs and no administrative costs or arrangement fee. There arn't any redemption costs or discharge costs. In addition to this you can make overpayments without any charge and the interest on any overpayment is calculated daily (there are not any limits on the overpaymets- that I'm aware of).

All in all this is a really competitive mortgage for a 90%LTV from one of the big four.

Poolman99

Just to echo a few thoughts - I can't recommend this deal highly enough.

Nothing to pay to get in, nothing to pay to get out! You could literally sell / pay it all off / re-mortgage with someone else in a few months and only pay the interest calculated daily.

I made an overpayment from my Lloyds current account and the money was showing as a credit on my HSBC mortgage account in seconds. That's quite powerful for motivating you to overpay too!

Bluebirds1975

Poolman99 wrote: »

Just to echo a few thoughts - I can't recommend this deal highly enough.

Nothing to pay to get in, nothing to pay to get out! You could literally sell / pay it all off / re-mortgage with someone else in a few months and only pay the interest calculated daily.

I made an overpayment from my Lloyds current account and the money was showing as a credit on my HSBC mortgage account in seconds. That's quite powerful for motivating you to overpay too!

This is one of the reasons this offer looked good. no fees in or out and i am looking to overpay every month which is free to do :money:

bubblesmoney

thanks for all the input that there indeed are no fees. i was wondering if there were any hidden charges but guess there are no hidden charges as has been confirmed by others.

on querying about early repayment charges and any limits or exra charges for large early repayments, i was told by the mortgage advisor that one can pay off the entire mortgage in 'one day' after the mortgage was started and still not pay any extra fees and interest would be due only for the one day that the mortgage was in operation. if true then i dont think deals can get much better than this.

regarding the premier account. one of the conditions is having 50k savings with hsbc. i am not clear about one thing. for eg. if i am eligible under the premier scheme for having 50k deposit with hsbc but in the scenario where i use that 50k for paying the deposit on the mortgage i wouldnt have the 50k in deposit anymore. so on the mortgage going thru, i would have a mortgage less than 250k and no savings of 50k (as used up for mortgage deposit), which wont fit the premier criteria. what happens in this scenario??? there seems to be a clause saying should one not fit the premier criteria anymore then at review (annually i think, dont know if they can do that in a month soon after they realise there is no more a 50k deposit as has been used for mortgage) they reserve the right to charge fees for using premier facilities.

has anyone been in a similar situation as underlined above? any feed back on what the fees are? if the fees are bigger then it might be better to be on the 5.99% (0.99% above BOE base rate) standard life time tracker rate as there would be no fees to pay plus paying interest rate of only 0.2% extra rather than the premier rate.

regarding overpayment i think it is good as even if one make exactly the same monthy payment for the tracker mortgage as one would have to make under the fixed deals, then the mortgage would be paid off in the tracker deals years sooner without making any over payment. i suppose it is the same with any tracker mortgage as one takes the risk on not being on fixed rates.

Bluebirds1975

bubblesmoney wrote: »

thanks for all the input that there indeed are no fees. i was wondering if there were any hidden charges but guess there are no hidden charges as has been confirmed by others.

on querying about early repayment charges and any limits or exra charges for large early repayments, i was told by the mortgage advisor that one can pay off the entire mortgage in 'one day' after the mortgage was started and still not pay any extra fees and interest would be due only for the one day that the mortgage was in operation. if true then i dont think deals can get much better than this.

regarding the premier account. one of the conditions is having 50k savings with hsbc. i am not clear about one thing. for eg. if i am eligible under the premier scheme for having 50k deposit with hsbc but in the scenario where i use that 50k for paying the deposit on the mortgage i wouldnt have the 50k in deposit anymore. so on the mortgage going thru, i would have a mortgage less than 250k and no savings of 50k (as used up for mortgage deposit), which wont fit the premier criteria. what happens in this scenario??? there seems to be a clause saying should one not fit the premier criteria anymore then at review (annually i think, dont know if they can do that in a month soon after they realise there is no more a 50k deposit as has been used for mortgage) they reserve the right to charge fees for using premier facilities.

has anyone been in a similar situation as underlined above? any feed back on what the fees are? if the fees are bigger then it might be better to be on the 5.99% (0.99% above BOE base rate) standard life time tracker rate as there would be no fees to pay plus paying interest rate of only 0.2% extra rather than the premier rate.

regarding overpayment i think it is good as even if one make exactly the same monthy payment for the tracker mortgage as one would have to make under the fixed deals, then the mortgage would be paid off in the tracker deals years sooner without making any over payment. i suppose it is the same with any tracker mortgage as one takes the risk on not being on fixed rates.

There is a rate in between the 5.79% premier and 5.99% given to Joe public. For plus customers (£12 a month for the current account) which gives you 5.89% tracking at 0.89%

I looked at the premier tariff and as my morgage was below £250.000 adn didn't have £50k worth of savings and didn't earn above £75k didn't bother asking about it.

When I went into the branch to get my ID certified the lady did say that once the plus contract had run out (12 months) if I decided to go back to a normal free current acount my rate would stay at 5.89%

This may be the same if you take out the premier rate

boinging_2

bubblesmoney wrote: »

what happens in this scenario??? there seems to be a clause saying should one not fit the premier criteria anymore then at review (annually i think, dont know if they can do that in a month soon after they realise there is no more a 50k deposit as has been used for mortgage) they reserve the right to charge fees for using premier facilities.

has anyone been in a similar situation as underlined above? any feed back on what the fees are? if the fees are bigger then it might be better to be on the 5.99% (0.99% above BOE base rate) standard life time tracker rate as there would be no fees to pay plus paying interest rate of only 0.2% extra rather than the premier rate.
.

You are right no fees regardless of any overpayments (and as you said in your OP, if you over pay the difference and fee's that you would have paid elsewhere that will help shorten the loan term).

Have you applied for a mortgage yet? You may be able to become a Premier customer prior to taking your mortgage application, though they will ask what your long term plans are for your savings - so play cagey with them! My instinct says that once you have booked the mortgage if you fall out of the criteria then you will probably lose all the other benefits of being a Premier customer (free travel insurance etc) but retain the rate on the mortgage.

bubblesmoney

no i havent filled in the application yet as seller is playing games with me and still keeping house on market inspite of telling me that it would be off the market. so informed them just now that am not going ahead with the purchase. will start looking around for other places or will reconsider if they get back to me with the property i was interested in.

but i do know that in other banks things get mis sold to customers by some employees when they have to meet their points targets etc. so advantage accounts etc get flogged to customers with normal accounts looking for loans etc, the customers get told that they get lower rates if they take the advantage accounts. in many banks they have trial periods for these accounts and u can cancell them. but the rules actualy say that if u have used the benefits of the advantage account then u cant cancel or u revert back to the normal rates. but conveniently some employees that mis sell these advantage accounts etc 'forget' to mention to customers that they would revert back to the standard rate for loans if they dont maintain the advantage status or actually also tell them that they can use the trial period to take the lower loan interest rates but later cancell advantage account fees and can still jeep lower loan rate, the classic mis-selling scam all for meeting their monthly selling targets in banks. but customers who fell for this mis-selling have been able to keep their lower rate on the argument that they were missold the loan by the bank in the 1st place. i gathered this info from others

bubblesmoney

is there anyone who got these premier rates and in the subsequent years didnt satisfy the premier criteria (i.e. 50k savings or 250k morggage+ >75k annual earnings for the individual). can such people let us know if they were allowed to stay with the premier rates without additional charges or did they revert to standard rate?

can anyone with premier lifetime tracker mortgage with hsbc see their mortgage agreement and see in the terms and conditions what it actually says in it regarding this issue please. any clarification is much appreciated