HSBC Tracker Mortgage

kizzie01

Hi

I’ve been reading these forums for a while now and have been really inspired to start overpaying my mortgage, even by small amounts each month.

I’ve opted for an HSBC lifetime tracker mortgage at 5.74% for £100,000 over 19 years. It’s a new mortgage due to start in November. I have no restrictions on overpaying, not that it will be a great deal to start with. I will probably only pay over small amounts that I have left at the end of the month, to start with anyway.

My mortgage Account Manager at HSBC has confirmed that I can transfer money from my current account into my mortgage account online as and when I have funds. I had to really push him to confirm I was correct in that I can do this, after reading these boards!

He has advised me that if I say overpay by £100 one month, then my normal monthly direct debit will reduce by that amount the next month. Can anyone please confirm if this is correct? This would then have the effect of not reducing my mortgage term wouldn’t it?

If this is correct, can I just write to HSBC and ask them not to reduce the amount? I want to reduce the term of the mortgage and not the amount I pay.

I would really appreciate some advice on how HSBC’s tracker mortgage works, as I don’t seem to be able to get any definite answers from my Account Manager.

Thanks very much.

linni

I am also with HSBC and I just told them what I overpayment I wanted to pay each month (about £50). Sometimes I pay off an extra £100 as well, if I can afford it, and they will just send you a letter saying that if your overpayment was not in force your normal payment would be £....... If you want to reduce your payments just tell them and they will do it. I have found them very good and just by doing this I am now overpaying by about £100 a month because my mortgage has reduced so much and I have saved thousands of pounds in interest. Good luck.

karelyn

I confess to having some inside knowlede here - I work for HSBC but can confirm if you make overpayments, you have the option to either reduce your monthly payments going forwards, or continue to pay the original amount, and therefore reduce the mortgage term. The latter will have a much bigger effect of reducing your overall costs.
You can make overpayments on an ad-hoc basic through HSBC internet banking or via another banks internet banking - you would just need to quote the sort code and account number of your mortgage account. If you don't want to use the internet to do this, you can give instructions through your branch. On the Tracker you can overpay by unlimited amounts, but take care if on a fixed or discounted rate as there are penalties for overpaying by more than 20% a month.
If you plan to make a regular overpayment on a monthly basis, contact your branch who can arrange for the normal monthly direct debit to be increased. You can cancel the overpayment at any time.

techno12

I'm on the Lifetime Tracker an made my first overpayment (£100) a couple of months ago. Was surprised to get a letter saying my regular payment has now gone down by 67p or whatever.

I'm happy with this as the lower the monthly payment I'm obliged to pay the better. That 67p saved will go towards the next overpayment anyway, so it makes no difference. Plus, if times are tough in the future I'll be glad that I've chipped away slightly at the monthly payment required, rather than fixing it at the current level.

On a slightly related note, has anyone received a letter detailing their new lower payments due to the BOE cut? I've heard of people getting them on other threads but I've not heard a peep yet..

Ety

Hi, we have received a letter confirmed a decrease in the monthly payment - so I'm sure it's on it's way to you!

Etyx

marcyj_2

techno12 wrote: »

On a slightly related note, has anyone received a letter detailing their new lower payments due to the BOE cut? I've heard of people getting them on other threads but I've not heard a peep yet..

I got mine via the HSBC Internet banking message service. Take a look next time you log in.

Peelerfart

I too have a tracker with HSBC and I have set up an overpayment.Just Email them from "My messages" on their website and tell them what you want to do.They usually reply within 24 hours and you can amend any overpayments you set up, easily through the same method.Got to add that I am very,very pleased with HSBC and theiir communication lines.