HSBC Home Buyer Mortgage Variable

Shauny_G

Morning guys,

been searching through the forums and impressed with all the helpful advice, I have received a letter today from HSBC as my Mortgage is due for renewal, and I'm unsure of how good it is, just want same basic feedback.

Here's the main part of the letter.

Under the existing terms you will revert to Home Buyer Mortgage variable which is currently 1.50%. The overall cost for comparison is 1.5% APR.

Our new monthly payment will be £383.82 which is saving from our fixed Mortgage monthly payments of £140 monthly.

This obviously seems very good, which ofc is my worry, what is the downside to this, does it seem a good idea to revert to this?

Thanks in advance.

Shaun

_Andy_

It's excellent- you won't find lower anywhere else.

sophievenusdoom

Andy is right - not many companies have a rate of 1% above the BOE rate!

Shauny_G

Thanks for your replies guys, much appreciated!

TrickyDicky

why not use the saving as an overpayment and reduce your mortgage term?

blueberrypie

The downside is that it's a variable rate, and if interest rates go up, yours will too. There is little point in overpaying it when it's at such a low rate, but it would be sensible to use the monthly saving (and any other funds you can) to stash in the best-paying account you can find, so that when rates do go up, you will be able to reduce the amount you owe on the mortgage.