Hsbc fixed rate?

Joe_Millionaire

Hi there,

Can someone please tell me what they think the best deal is out of these HSBC Deals.

Value 165000
Loan 106000
2 year Fixed

3.09 with £900 A/fee giving £742 Per Month,
2.89 with £1300 A/fee giving £737 Per Month,
2.49 With £2200 A/fee giving £720 Per month.

All fees will be added to the loan.

My head is going to come off or my calculator is going out the window.

Thanks:beer:

mumboojumboo

Total amount over 2 years would be:

>>3.09 with £900 A/fee giving £742 Per Month,
18708

>>2.89 with £1300 A/fee giving £737 Per Month,
18988

>> 2.49 With £2200 A/fee giving £720 Per month.
19480

assuming you pay off the arrangement fee immediately (without attracting any interest)

so 3.09 looks good.

Joe_Millionaire

No i will be adding the arrangement fee to the loan

dimbo61

My question is why are you paying a fee of £900/1300/2200 for a 2 year fix !
Are you going to clear the mortgage in 2 years ? or move house ?
If not think long term rates have never been this low BOE base rate 0.5% so now is a good time for a long 5year + deal and then overpay on top.
Only my opinion ! GOOD LUCK

Joe_Millionaire

It is all good and well saying that rates have never been this low BoE base rate 0.5% but fixed rates have been around 4-6% for the last 5 years. I am trying to lower my payments from £850 at the moment but do not want to increase any years

Thrugelmir

dimbo61 wrote: »

My question is why are you paying a fee of £900/1300/2200 for a 2 year fix !
Are you going to clear the mortgage in 2 years ? or move house ?
If not think long term rates have never been this low BOE base rate 0.5% so now is a good time for a long 5year + deal and then overpay on top.
Only my opinion ! GOOD LUCK

Sensible advice. With fees this high you would need a substantial mortgage for it to make sense.

Might as well drop into the SVR and over pay your mortgage at the moment.

mclaren32

mumboojumboo wrote: »

Total amount over 2 years would be:

>>3.09 with £900 A/fee giving £742 Per Month,
18708

>>2.89 with £1300 A/fee giving £737 Per Month,
18988

>> 2.49 With £2200 A/fee giving £720 Per month.
19480

assuming you pay off the arrangement fee immediately (without attracting any interest)

so 3.09 looks good.

This is why people should never get wrapped up in the Headline rates offered, but actually look at the cost over 2 years instead.

I would be surprised if there arent other deals out there with higher rates but significantly cheaper arrangement fees that work out cheaper.

Time to run some quotes!:j

gardner1

hsbc also have a discount rate 2.49% for 2 yrs with a £249 booking fee which can be added to loan
http://www.hsbc.co.uk/1/2/personal/mortgages/remortgage/special;jsessionid=0000hwHhECks9CO6Ug3TvgI6bq4:12c58ti63

samnorris2

mumboojumboo wrote: »

Total amount over 2 years would be:

>>3.09 with £900 A/fee giving £742 Per Month,
18708

>>2.89 with £1300 A/fee giving £737 Per Month,
18988

>> 2.49 With £2200 A/fee giving £720 Per month.
19480

assuming you pay off the arrangement fee immediately (without attracting any interest)

so 3.09 looks good.

You also need to consider more than the cost over the term...

• Interest Payable
• An how much equity you will have in your home

Assuming this mortgage is over 20 years

Rate . . . . . . . . . . . . . . . . . .2.49 . . . 2.89 . . . 3.09
Fee . . . . . . . . . . . . . . . . . . £2200 . . £1300 . . . £900
Interest Paid . . . . . . . . . . . .£5080 . . £5906 . . . £6319
Equity . . . . . . . . . . . . . . . . .£8389 . . £8064 . . . £7905

Cost Inc Fees over 2 years . . £15669 . .£15270 . . £15124

Outstanding Balance . . . . . . .£97612 . . £97936 . .£98095

Total (cost + balance) . . . . . £113281 . .£113206 . . £113219

So even though 3.09 means you are paying the least over the 2 year term it would also give you the least equity in your home after the same period. If you were to pay of the arrangement fee at the beginning the 2.89 is marginally better but as you'd be accumulating interest on it over the term of the mortgage the 3.09 is the better deal.

Although I've come to the same conclusion as mumboojumboo I just wanted to raise the awareness of other things to consider when consider when weighing up your options.

Sam

Joe_Millionaire

Ok having read your comments - Thank you and not been able to get the HSBC Deal, I have looked at a lower A Fee and found
First Direct 3.99% - 2 Year fixed - £99 Booking Fee - NO A Fee - £783.54 PM -
Total Paid - £18,804.91 - + Total Outstanding £95,248.96 = £114,053.87

Any Thoughts

happybroker

My thoughts are that if you haven't been able to get the hsbc deal then first direct may also be unavailable seeing as though they are essentially the same firm.

Be carefull of how many places you go to and have searches done as this will have an impact on your score when you try next time. If you are really insure of what is the best way forward seek some quality professional advice.