HSBC fixed rate deal query

charis18uk

I have just been on the phone to HSBC about my fixed rate mortgage deal that ends in October. BAsically what I wanted to do was end it early and go onto the SVR. I was quoted a fairly small amount to end my deal.

HOWEVER...

They say I cannot just go onto the SVR if I end my deal early. They will only allow me to take out another fixed rate (at a ridiculous rate) and besides I don't want to fix at the moment.

The only way I can get onto the SVR is to sit tight and wait for my deal to end. I'm happy to do it, but find it completely bizarre that I can't just end the deal and sit on the SVR. Has anyone else had a similair experience?

beecher

Why do you think it is bizarre? HSBC aren't the only lenders to do this at the moment and they're under no obligation to let you.

cbrpaul

I think when your on a SVR, you are classed as a " free agent" so to speak , so you can leave them at anytime, with no fees, no redemtions etc, and of course they want to keep you if they can, or charge get something out of you if you do leave,

So they are just using good business sense I guess !!

charis18uk

I suppose I think it's bizarre as I hadn't hear of this before. Never looked into ending a deal early. I agree it makes good business sense and to be honest I've always been happy with HSBC and their mortgages. I'm happy to sit for a few months for my deal to end anyway, just queried it cause I wasn't aware of it to be honest.

As it happens I only wanted to come out of my fix early as I want to make large overpayments and have no intention of switching my mortgage to anyone else.

Robert_Sterling_3

I think perhaps you misunderstand the meaning of a Fixed Rare Deal. It means the rate is Fixed. They will not put the rate up for the period of the deal and nor will they put it down for the period of the deal.

charis18uk

Robert_Sterling wrote: »

I think perhaps you misunderstand the meaning of a Fixed Rare Deal. It means the rate is Fixed. They will not put the rate up for the period of the deal and nor will they put it down for the period of the deal.

On the contrary I completey understand the meaning of a fixed rate deal. I am not asking for them to reduce the fixed rate interest amount I merely enquired as to what cost I would incur if I chose to end the deal early (early redemption fee). By ending it early I hoped to go onto the SVR and start overpaying (I can only make 20% overpayments while in this fixed rate).

I was just taken aback that I cannot just pay the early redemption fee and go onto the SVR.

It's not that I'm even complaining about it as my deal ends in August anyway, I was just trying to make my money work as hard as it can. After all I work hard enough earning it!

maz_student

(Please can someone say what SVR is? Thanks)

donnyboy

maz_student wrote: »

(Please can someone say what SVR is? Thanks)

Standard Variable Rate