Fixed period ending - choices, choices

ScoobyLoot

Hi,

I'm 6 years into my mortgage and my second fixed period (6.39%) is due to end soon and I've received a notification letter setting out a couple of options. I've decided that I'm quite tired of HSBC and their long-winded call centres and other hassles so I've looked to remortgaging elsewhere.

HSBC's fixed terms come with the ability to overpay but only by 20% of your regular payments. I've been doing that from the start and have made quite a dent.

I looked at the Co-operative Bank and they let you overpay by 10% of the balance in a calendar year, which for me would offer me the same effect as being able to overpay any amount I like on a variable/tracker mortgage.

I've looked at 2 and 5 year fixed options, and lifetime trackers.

Co-op offer 2 years @ 2.95% with £999 fee.
HSBC @ 3.19% with £599 fee.

Co-op offer 5 years @4.19% with £999 fee.
HSBC @ 4.49% with £599 fee.

Both banks offer lifetime trackers, tracking at 1.99% above base (so 2.49%), and both banks charge £999 fee for the "privilege". :eek:

Staying with HSBC then seems the most sensible option since if I move I would have to pay in the order of £12-1300 in bond and valuation fees on top of the £999 for the mortgage application itself. It's not worth me paying £1300 to move to be on the same rate.

The fixed rates are maybe a little different: with the Co-op Bank I get the benefits of being able to overpay considerably more, yet be on a fixed rate. But I still have to pay the £1300 to move of course.

I'm thinking I'll go onto the tracking mortgage, stay with HSBC and simply keep my payments as they are now, so I'll be paying almost double. Of course if I want to fix later if rates start rising too much, then I'll have to pay yet another booking fee then. Even limiting myself to two banks (Co-operative being my preferred choice) I've still got a choice of 6 mortgage products and no crystal ball to work out the best choice.

Thoughts please? I have a shade over £100k left to pay.

One thing bugs me: whatever dent I make in my mortgage, each time I refix I've kept the term of the original mortgage and so have effectively reset the clock on paying early. Is ti worth reducing the term of my mortgage at the same time if I can afford the higher payments, or is it best to keep the flexibility of lower payments and overpay?

Thanks

ScoobyLoot

Bump... Anyone any views?

getmore4less

Do you need to fix? (probably not if you overpay)

LTV?

whats the do nothing rate if you stay with HSBC?

If you do end up changing look at the follow on rates

enomis

HSBC have reduced their fees this month so their deal my be more benefical to you.

i just fixed with them and was able to get their 70% LTV deals although my actual LTV was 73%.

ScoobyLoot

Thanks, that's interesting.. they've worked out my LTV as 70% but I've seen that they have a different rate available if your LTV is 60%. I think mine is less than that (closer to 50%) and don't see why I should fork out for a product that doesn't suit.

They're arranging a proper valuation of my home. The advantage then is that I'll be eligable for a lower tracking rate and the booking fee is £99 instead of £999! :eek: The difference should more than cover the cost of the survey - provided of course their valuer comes up with the right figures... That shouldn't be hard though.

The info on their web site suggests the standard fee is still £999 for the 2.49% tracker. So here's hoping for the 2.19% and a booking fee a tenth the size. I really don't see how they justify the difference in charges...

enomis

Hope that works out for you. Just wondering where you see the fee as £999. I see it as £399 standard, less if you're an Advance or premier customer.

ScoobyLoot

My offer document says £999 booking fee for the 2.49% Lifetime Tracker but looking at the same mortgage on their site you're right - it's £399 as the booking fee! How shifty is that?! :mad:

dimbo61

So contact them on monday and ask whats the booking fee.
My brother as an existing HSBC customer has just applied for the 2.49% tracker deal but its onlt available for 2 weeks ?? so get on the phone ASAP

ScoobyLoot

hehe I was already on the case! I've been given a number to call on Monday so I'll see what happens. I've got that and the potential for the "special" (LTV <60%) in the pipeline so will have to see how those pan out. It all needs sorting by the end of the month so hopefully it'll all come together and one option or the other will be available

ScoobyLoot

Hurrah! After much to-ing and fro-ing and talking to people with strong accents over rubbish lines, it seems HSBC have now agreed that the lower LTV applies without the need for a valuation and so I qualify for the 2.19% mortgage and with a £99 booking fee instead of £399 or my original offer of £999(:eek:). Whoopee! :j