Where to overpay?

dimbo61

Without working out all the maths from the 2 deals on the table
could you take the HSBC mortgage and throw every bit of overpayment at the £60k part with the higher rate ?
Boe + 0.74 is one hell of a deal
Any chance bank of mum and dad might be able to help and repay them plus interest at say 4.98%
£300k mortgage is a huge mortgage and a few interest rate increases could really hurt but if you can make regular overpayments of say £500/750 a month it would help
Just went on HSBC website but unable to get figures for the £240k at 3.74%
and £60k at 4.98%
Only you know how LOVELY HSBC have been to you !

pieman_71

Been thinking about that and although bank of mum & dad isn't an option I can get the necessary 28k by cashing in everything I have, including 21K of S&S ISA's which have plummetted this year so not sure that's a very wise idea?

If I stay put at Britannia my payments will be 1122, if I take the 1.98 option at HSBC 1583 (+ the 1 off 599) but as I'm comparing IO and Repayment it's not exactly a fair comparison.

BTW, got the quotes from the calculator here:
http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

As for HSBC, I remembered my ex banked there and I'm thinking they're made for each other!!!

dimbo61

When on the fsa website and put in the britannia deal on repayment at 4.49%
£1122.5 IO
£1665.8 REPAYMENT
So only about £80 a month in it and you can overpay by £80 a month from the £599 fee for 8 months.
Who knows how S&S ISA,s will perform in the coming months but you need an emergency fund.
Stay where you are and wait and see what happens with the market and OVERPAY,OVERPAY and when you can OVERPAY GOOD LUCK

pieman_71

thanks for all the responses, for those interested the latest on the saga is I've been escalating it within HSBC and they've now said as I'd paid the fee I secured the deal so they will give me it! Not holding my breath but fingers crossed they won't change their mind. Again.

dimbo61

Lets be positive here
When you applied for the loan it was boe 5% plus 0.74%=5.74%
now the boe is 3% so loan now 3.74%
use the 2% savings to fill a cash ISA and then overpay the mortgage big style.
The rate may not stay that low for long and not 25 years so every penny overpaid now will save you lots of interest GOOD LUCK and well done for fighting your corner.

pieman_71

Completely agree . . . it's very positive news, I'm just being cautious as they've let me down before. Assuming it comes off my repayments will be less than they were on the 100% IO at the outset but 100% repayment leaving room for the overpayments and ultimately mortgage free in far less than 25 years even if I do only get a couple of years of decent overpayments.

thanks for all your advice

StuartGMC

Pieman
Been watching your thread and hope that your persistence will pay off on that deal and that you will be able to OP such that the capital reduces rapidly whilst rates are low.

Best wishes

pieman_71

Well, I've stuck in there and after countless phone calls and endless chasing of HSBC and their solicitors I have today received the news I've been waiting for and it should all complete tomorrow!

Fingers crossed they won't think of something else tomorrow. . .

pieman_71

Final post to say it has completed!

Thanks to all for their advice and support on here.

StuartGMC

Pieman
Great news, well done.

Is this the start of your diary thread to MF date?