Worried about renewing mortgage

Nickij

My husband and I bought our first house back in May 2006, we took out a 100% graduate mortgage home start mortgage (interest only for first three years) with HSBC back for a three year fixed of 4.99%. This will revert to HSBC's SVR in June 2009.

We will start making capital repayment in June 2009 so our repayments will go up anyway (we used the extra money we would have been paying on repayment to do work on the house and pay for our wedding).

As house prices are falling I am worried we won't be able to get another fixed rate even if we stay with HSBC, should I resign myself to the fact now we will have to stay on the SVR?

_Andy_

HSBC will offer you fixed or tracker options, you won't be forced to stay on the SVR.

opinions4u

1) It's not that many years ago that the SVR was all you would get at the start of a mortgage, let alone at the end of a special deal.

2) With an SVR of 5% you will be paying the same rate as you are at present. That's not bad going when you would probably have anticipated an increase in costs. I would suggest setting up some sort of contingency fund if you are on a SVR rate - just to protect yourself against unhelpful increases in future!

3) HSBC are under no obligation to offer you anything other than SVR. They probably will, but the market is weird these days and judging what they'll do next week is tough. Guessing about next June is pointless.

4) Unless you have at least 10% equity in your property, you are probably stuck with HSBS. There are far worse lenders to be stuck with.

payless

It's not that many years ago that the SVR was all you would get at the start of a mortgage, let alone at the end of a special deal.

I've been brokering for 17 yrs and we had discounts off SVR even back then .. never remember selling new deals at SVR

opinions4u

payless wrote: »

I've been brokering for 17 yrs and we had discounts off SVR even back then .. never remember selling new deals at SVR

Prolly was about 18-20 years ago.

I'm getting on a bit lol!

Nickij

Thanks for the replies. I agree HSBC are not to bad a lender to be stuck with.

If we do end up on the SVR with the BoE rates as they are at the moment it shouldn't be too bad, but I am just that sort of person that like to know what my monthly payments are going to be. However what will be will be, and I guess I will have to wait until around march until I can get some idea of what they may offer us.

payless

opinions4u wrote: »

Prolly was about 18-20 years ago.

I'm getting on a bit lol!

so can we agree that 18 yrs is actually more than " not that many years ago";)

opinions4u

payless wrote: »

so can we agree that 18 yrs is actually more than " not that many years ago";)

Time is relative.

(but yeah!).

payless

Ok Albert ( Einstein )