A change in tone - HSBC launching 90% LTV @ 4.59%

Conrad

http://introduceruk.com/index.php?n=1642&s=news&#panel-1

No I'm not implying you should fill yer boots, just observing gathering ripples lapping at the tanker is all.

90% first time buyer mortgages at 4.59% on a large scale is something new.
Need to be eligible to open a 'plus' Bank account though, none the less it's a start.

£1bn is a relatively small sum - 10,000 £100,000 mortgages (v quick calculation - could be wrong, oops).

chucknorris

Conrad wrote: »

http://introduceruk.com/index.php?n=1642&s=news&#panel-1

No I'm not implying you should fill yer boots, just observing gathering ripples lapping at the tanker is all.

90% first time buyer mortgages at 4.59% on a large scale is something new.
Need to be eligible to open a 'plus' Bank account though, none the less it's a start.

£1bn is a relatively small sum - 10,000 £100,000 mortgages (v quick calculation - could be wrong, oops).

From your link:

Lifetime Tracker (Home purchase only) - 4.59 % - 90 % - £999

Am I reading that correctly as 4.09% over the base rate? Surely it would be madness for anyone to select that one. I think I must have misread it somehow?

Really2

Just posted the same, that will teach me to not look first.:D

zappahey

Conrad wrote: »

Need to be eligible to open a 'plus' Bank account though, none the less it's a start.

Which, effectively adds £12.95 per month to the cost of your mortgage.

Chris2685

Sounds interesting. I just checked what I could borrow and with their current mortgages I couldn't even afford to buy a studio apartment here (82% LTV)

Really2

OK the HSBC pmortgage made me think what FD must be doing.

http://www.firstdirect.com/mortgages/rates.shtml

No mention of LTV for a short fix that is a nice rate.
2 years*2.99%Standard Variable Rate for the remainder of the term, currently 3.69%3.7% APR£299£599

Dan:_4

zappahey wrote: »

Which, effectively adds £12.95 per month to the cost of your mortgage.

Just close it after the mortgage is complete.

GDB2222

chucknorris wrote: »

From your link:

Lifetime Tracker (Home purchase only) - 4.59 % - 90 % - £999

Am I reading that correctly as 4.09% over the base rate? Surely it would be madness for anyone to select that one. I think I must have misread it somehow?

4% over base? Sheesh!

MrDT

chucknorris wrote: »

From your link:

Lifetime Tracker (Home purchase only) - 4.59 % - 90 % - £999

Am I reading that correctly as 4.09% over the base rate? Surely it would be madness for anyone to select that one. I think I must have misread it somehow?

So in a few years when the base rate is back to a normal level, say 6% (and that's low, I think long term average is around the 7% mark), your mortgage rate would be in excess of 10%.

Suicide mortgage.

Surely it's better to go for a 10 year fix at around the 5% mark?

chucknorris

MrDT wrote: »

So in a few years when the base rate is back to a normal level, say 6% (and that's low, I think long term average is around the 7% mark), your mortgage rate would be in excess of 10%.

Suicide mortgage.

Surely it's better to go for a 10 year fix at around the 5% mark?

When I first read it I thought I was somehow misreading it but I think it must be a typo, it can't be a >4% over base rate tracker, I mean who would go for that?

Graham_Devon

What's the income mutliples for this?

I certainly wouldn't want to be taking a 4% over base rate mortgage! Though sure plenty will go into it based on todays repayments not thinking a few years down the line.

On saying that, mine now appears to be 3.75% above base rate, but was always 2% above!