HSBC Tracker floor

northwest1965

We have searched out HSBC agreement and cannot see anything about a tracker floor. Anyone got a mortgage with them and know different?
Thanks

StrawberryJam_2

I similar can not find anything in my T&Cs, however it has been publicly said that HSBC reserves the right to stop cutting trackers if there is a 'material change in the mortgage market'
Which I presume is no there is no collar, however we may introduce one if it gets as low as 2%, the 'eventually' passed on the December 1% reduction, although in November were first to announce the 1.5 % reduction will be passed to customers. It would appear they were thinking about something in Decembers 1% reduction?/

HSBC really ought to come out with a clear message, as opposed to hiding behing the change in mortgage market, as that is the wooliest comment ever, plus every lender probably can not find that clause in any literature. I certainly cannot find it in every HSBC product information I have. It certainly is not on the KFI (Key Facts Illustration) (wonder what the stance of the FSA is?)

however this post has some HSBC quotes from telephone conversation and written correspondence with HSBC.
http://forums.moneysavingexpert.com/showthread.html?t=1268207

bfgun

Im in the process of applying for a HSBC tracker at the 0.99% above BBR rate. When I applied I asked them if there was a collar and they told me there wasn`t.

StrawberryJam_2

I had spoken with my local HSBC branch manager this morning, and he said there was no collar to tracker mortgages. I asked about the T&Cs and the wooley statement, I said that I could not find any reference to ''if there is a material change in the mortgage market' for him to reply that he was not aware of it.

HSBC are going to give me a call back.

Would appear the manager and staff are not aware of this T&C, so maybe this T&C does not exist? Any person able to direct me towards the HSBC T&Cs regarding 'if there is a material change in the mortgage market'?????

northwest1965

We too went in our HSBC today, no collar with the tracker

skyjumper

thought this might be helpful. Got this message from HSBC earlier today

Following the decision by the Bank of England to decrease its base rate, we have now decreased our mortgage rates.

Your interest rate of 3.**% changed on 5December2008.

The new interest rate is 2.**%, this is 0.**% above the Bank of England Base Rate.

Your standard payment will change from GBP***.** to GBP***.** on 10January2009.

atleast for now, I can confirm that there is no 3% collar for HSBC

micken

skyjumper - thanks for that information.

whiskey1983

I've just taken out a HSBC tracker at BoE +1.24% and I have received the November 2006 edition of the Mortgage Loan Terms and Conditions. Having looked through evry part of it, I quote from page 5:

Para 11 - Variation of the terms and conditions applying to the Agreeement

Para 11.2 - We can also change the terms and conditions of the Agreement in order to reasonably reflect the fact that any of the following have occured or are about to occur, provided that we do not do so for any arbitrary or improper purpose:

any material change in conditions in or affecting the UK mortgage market.

any change in the lending practices of banks and other financial organisations offering similar services to teh Agreement (including the terms on which they offer such srvices).

I've only picked out the two sub-paragraphs that appear relevant. Further on in Para 11 it states We will give you 90 days notice of any such change....

I think this is the paragraph that is causing so much confusion and I've also spoken to them and they've said that they have no intention of introducing a collar. However, if they did, according to the T&Cs I've got they'd have to gove 90 days notice. Hope that this is useful, the small print is really small!

MrsGypsy

Hi, skyjumper is right.....

there appears to be no floor.

we took out our +1.14% tracker last month and we received an email last week from HSBC to confirm the rate has dropped to 3.14%

GOOD TIMES!!!

We only just bought our house and had budgeted on monthly payments of £920 based on a much higher rate. We were planning on keeping on with these payments, which means we'll be over paying by about £300 each month.

Is this the best thing to do? Or would it be better to bank the money to use when rates go up again?

Gorgeous_George

skyjumper wrote: »

thought this might be helpful. Got this message from HSBC earlier today

Following the decision by the Bank of England to decrease its base rate, we have now decreased our mortgage rates.

Your interest rate of 3.**% changed on 5December2008.

The new interest rate is 2.**%, this is 0.**% above the Bank of England Base Rate.

Your standard payment will change from GBP***.** to GBP***.** on 10January2009.

atleast for now, I can confirm that there is no 3% collar for HSBC

Crikey! You would have thought they could have been a little more specific. All those asterixes are dreadful. Hardly worth sending you a letter at all.

GG