HSBC 1.69% repayment vs First Direct Offset BBR Tracker

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

Comments

  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    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.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • 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
    michaels Posts: 29,075 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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.
    I think....
  • 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.
  • 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.
    Mortgage free in June 2015.Yay!Now Debt free!... well i owe the wife a few quid.....
  • motch
    motch Posts: 429 Forumite
    edited 29 October 2010 at 10:30PM
    anyone know when the hsbc base rate + 1.69% lifetime tracker deal ends?
    Sure i read 31st oct somewhere.
  • hi Motch

    HSBC base rate +1.69% lifetime tracker deal ends the 31st October - thats what i was told by their mortgage advisor.
    MFiT-T2 Questee number 146
  • motch
    motch Posts: 429 Forumite
    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)
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.4K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.3K Spending & Discounts
  • 243.3K Work, Benefits & Business
  • 597.9K Mortgages, Homes & Bills
  • 176.6K Life & Family
  • 256.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.