HSBC Mortgages help/advice wanted

sky_blue_2

Anyone had any experience,views, horror stories! on their mortgages?

Im looking at taking out a £138000 100% graduate mortgage as it seems really competitive to me and i reckon id be better off not bothering putting down a 5% deposit as i will have to pay it back to the parents anyway. Its fixed rate 4.99% for 3 years then 5.5% variable thereafter. Id appreciate any advice

HGLTsuperstar

What are the redemption periods and penalties? What about higher lending charges, help with valuation and other fees, is it IO or repayment, and does it allow overpayments if you think you might want to do so?

sky_blue_2

20% of the monthly payment can be overpaid without charge for the fixed rate period then as much as you like after that. The early repayment charge is 1% of the amount repaid early for each remaining year of the fixed rate period, reducing on a daily basis. After the fixed rate finishes theirs a £75 admin charge to change lenders. No higher lending charge, valuation fee is £155, completion fee of £30 and booking fee is £399. Also its repayment not intrest only. Does that sound ok?

sarah_elton

Same mortgage I'm in the process of getting.

Bear in mind that valuation fee is mortgage valuation only.

Their Homebuyers then Full surveys are competitively priced, and it's not worth paying for your own more comprehensive survey separately. I'm upping to Homebuyers...

sky_blue_2

sorry sarah so what does that mean? that ill have to pay extra later on? i thought the valuation fee was to value the property your buying?

sarah_elton

sky_blue wrote:

sorry sarah so what does that mean? that ill have to pay extra later on? i thought the valuation fee was to value the property your buying?

No, no, you won't, don't panic sorry.

You can have just the basic valuation survey if you want. The surveyor will spend probably a few minutes and decide if the property is worth what you're paying for it.

You have the choice of whether to pay more for a Homebuyers or Full Buildings survey and a report will be sent to you. You can either have the HSBC surveyor up your service to these, or instruct separate surveyors yourself.

Guide to different survey types here:
http://www.themovechannel.com/howto/buy/surveys.asp

For the sake of a couple of hundred quid on something you're spending that much on, a lot of people don't bother with surveys. They can pick things up which could mean high costs for you in the future and personally I just think they're well worth it. You read about cases where people's homes have asbestos, or subsidence, or whatever else that in extreme cases renders them worthless, and surveys would have picked these things up so I get impatient. Last year mum pulled out of a house purchase after a survey showed up structural problems - cost her solicitors fees by then but would have cost her much more in the long run.

Of course they do sometimes miss things but that's another issue.

monkeysnail

The 4.99% fixed rate is really really good. Especially for 100% mortgage. After the 3 years, if rates are competitive, you can remortgage it and release some equity.

payless

monkeysnail wrote:

you can remortgage it and release some equity.

you don't release equity ... think you mean borrow more!

sky_blue_2

ok thanks people ive gone for it now!

AndrewSmith

It's a cracking deal and one that you should not hesitate to take up.

Just be mindful of the risks associated with 100% finance, and that in times like now where property prices are not increasing by much you could end up in negative equity.

m00

monkeysnail wrote:

The 4.99% fixed rate is really really good. Especially for 100% mortgage. After the 3 years, if rates are competitive, you can remortgage it and release some equity.

Its a stonking deal.

We took out 15 months ago, at 80% LTV the HSBC three year fix and thats costing us 5.79% 3 year fix with HSBC. - not a happy bunny but I guess you live and learn - an expensive mistake! We were FTB's at the time!