Help deciding...

Thrugelmir

Burridge60 wrote: »

Some may beg to differ. :beer:

They don't ride Black Bess anymore! Tongue in cheek !

Some of us are long term shareholders.

stmatt

Our plan would be to pay off the extra 20% i.e. a minimal amount and then build up our savings so we had money if anything unexpected came up. Then at the end of the fixed rate we would use savings to pay off more of the mortgage. Would this work or would this incur penalties?

Meeper

They may well be businesses, but every other lender who allows overpayments does it as a % of the balance outstanding, whereas HSBC does it as a % of the monthly payment. The misleading part as far as I'm concerned is that they don't necessarily make that clear to the consumer who, when hearing that they can make "20% overpayments" would be entitled to reasonably assume that it is the same as every other lender in the marketplace and based on the outstanding amount.

herbiesjp

Meeper wrote: »

They may well be businesses, but every other lender who allows overpayments does it as a % of the balance outstanding, whereas HSBC does it as a % of the monthly payment. The misleading part as far as I'm concerned is that they don't necessarily make that clear to the consumer who, when hearing that they can make "20% overpayments" would be entitled to reasonably assume that it is the same as every other lender in the marketplace and based on the outstanding amount.

Not really.

Anyone who is making an application for a mortgage would not be basing it in assumptions really.

They would base upon what they have been told, supported by the KFI.

I do agree though that it is very limiting to people who would like to pay more, a bit like Nationwide. However people then need to decide which deal they prefer over another, and that has to take into account any flexible options, not just rates.

ellives

According to the blurb....the HSBC tracker also let you make overpayments...."occurs when a borrower chooses to make a larger monthly repayment on their mortgage than is stipulated under the mortgage terms without incurring a charge."

...and unlimited lump sums without charge

...and 20% overpayment of monthly sum...

https://mortgages.hsbc.co.uk/product/A001001475000000000000000000-lifetime-tracker-standard

Pretty good?

Burridge60

Thrugelmir wrote: »

Some of us are long term shareholders.

Through thick or thin or after they got a good kicking !

Thrugelmir

Burridge60 wrote: »

Through thick or thin or after they got a good kicking !

Not all banks are the same (i.e. mismanaged) despite the way the media groups "them" together.

Thrugelmir

Meeper wrote: »

They may well be businesses, but every other lender who allows overpayments does it as a % of the balance outstanding, whereas HSBC does it as a % of the monthly payment. The misleading part as far as I'm concerned is that they don't necessarily make that clear to the consumer who, when hearing that they can make "20% overpayments" would be entitled to reasonably assume that it is the same as every other lender in the marketplace and based on the outstanding amount.

There is a fundamental difference with the approaches. As currently some banks are looking to reduce the size of their loan books. LloydsHBOS being the clearest example faced with an EU directive to downsize market share, has the the Governments Special Liquity Scheme to repay and also a need to reduce dependance on wholesale funding (new bank tax). There is a motive behind their current lax attitude. This will tighten once normality returns in a few years time.

Burridge60

Barclays then!

I cant wait to see Williams and Glyn's again!