HSBC 1.69% repayment vs First Direct Offset BBR Tracker

ranger28_2

Can someone help me before my head explodes?

I have a horrible rate with my existing vendor and am looking to remortgage. I have spoken with both HSBC and FD and have an approval in principle coming in the post and I can't select between the two.

HSBC are offering 1.69% + BBR so 2.19% on a repayment mortgage while FD have a 2 year offset at the same rate and a lifetime tracker at 2.09% + BBR.

If you had 250k to borrow on either mortgage which one would you go for?

Also can anyone let me know how fast or slow either bank is with processing times and service levels in general?

Thanks so much for looking at this thread and for any responses

Jonbvn

Is the HSBC mortgage a lifetime tracker also?

The offset is only worth it if you have significant savings to offset. Given that it is only for 2 years, I would say save the hassle of re-mortgaging in 2 years and go for the cheapest tracker from HSBC.

Note that FD is a subsidiary of HSBC.

ranger28_2

Thanks for your reply Jonbvn. The HSBC one is also a lifetime tracker. I've decided to go for the offset instead for now. Seems like a good way to save on taxes and have easy access to savings should I need them later.

michaels

At 250k the rate difference equates to 1000 pa in interest so you are putting a high value on the flexibility.

Worth noting that the max ltvs are 60% for hsbc and 65% for FD

Also FD are happy to lend me 4.5x income whereas HSBC offered me a max of 2.25x - not sure if this is because the criteria have been tightened in the past 6 months or if they have different policies with respect to dependants.

ranger28_2

I've gone back to HSBC now. 1.69 + BBR sounds like the best deal I can get. The FD rate would let me have easy access to savings (which would offset the mortgage) and I could use that to move home at a point.

But I've been going back and forth and you're right the 1000 pa is a very high price for that luxury. Shame about FD - I wish their rate was lower.

kent_money_saver

I tried to get a mortgage wih hsbc, the most they would lend me was 97k, my mort is 100k, initailly they said yes, but after a few forms went back and forth they withdrew their initial offer.
So i tried FD, they gave me 100k and fully agreed, how bazaar when they are both tied in together and effectively the same company.
There is a 2 year offset tracker at 1.89% plus the bebr.
Seems good to me.
Lord knows whats goin on with the bebr at the mo, its more like lucky dip.

motch

anyone know when the hsbc base rate + 1.69% lifetime tracker deal ends?
Sure i read 31st oct somewhere.

bungrefurb

hi Motch

HSBC base rate +1.69% lifetime tracker deal ends the 31st October - thats what i was told by their mortgage advisor.

motch

bungrefurb wrote: »

hi Motch

HSBC base rate +1.69% lifetime tracker deal ends the 31st October - thats what i was told by their mortgage advisor.

thanks bungrefurb

if I was to apply online or phone tomorrow would i qualify? (as in time wise)