HSBC 2.29% tracker does not really exist

sub_virk

Hello,

I went in the Local HSBC bank in Slough High street approx 2 weeks ago to discuss the 2.29% tracker mortgage for life deal. I want to remortgage to this product on an interest only deal. HSBC said that this deal would not be authorised because of the interest only. I have not read this limitation anywhere in the HSBC information on their website or anywhere else.

I get the feeling they are using this deal to draw people in. I'm sure this must not be legal.

Has anyone else had this problem?

Thrugelmir

The HSBC are under no obligation to lend you money on the terms you "want". Either apply for the product on a repayment basis or seek a product from an alternative lender.

beecher2

I don't get why you claim the tracker doesn't exist as clearly it does - you just don't meet their lending criteria. If HSBC cherry pick lenders who are safe bets then why would it be illegal?

sub_virk

You guys are missing the point. I'm just asking to remortgage on this deal on an interest only option. They do not say it is limited to repayment anywhere and i have more than 60% equity.

beecher2

sub_virk wrote: »

You guys are missing the point. I'm just asking to remortgage on this deal on an interest only option. They do not say it is limited to repayment anywhere and i have more than 60% equity.

They don't list other factors which will stop them from giving a deal either. Many lenders will have the same attitude to interest only. You don't have a right to be offered a deal - I'd use your energy in finding someone who will lend to you.

Thrugelmir

sub_virk wrote: »

You guys are missing the point. I'm just asking to remortgage on this deal on an interest only option. They do not say it is limited to repayment anywhere and i have more than 60% equity.

No, not missing the point. You've asked ,the HSBC have declined. Possibly for any number of reasons. Straightforward business decision by the HSBC.

The % of equity you have in your property, has no relevance to whether a mortgage is granted on an interest only or repayment basis.

How did you intend to repay the mortgage?
Why do want an interest only mortgage?

These questions are more poignant.

m_13

We're exchanging soon (hopefully) on the 2.29% HSBC Tracker. Applied on 18th February on a repayment basis over 15 years. It does exist but possibly not for interest only.

kingstreet

sub_virk wrote: »

You guys are missing the point. I'm just asking to remortgage on this deal on an interest only option. They do not say it is limited to repayment anywhere and i have more than 60% equity.

It may not be a product-specific issue. It may be that HSBC does not offer interest-only mortgages where there's no repayment vehicle. Did you ask them if you could have another product on interest-only?

The lender's lending criteria determines who gets a mortgage and often the product does not contain every possible term that might apply.

EG - They may not lend on concrete properties. Not at BoE +2.29%, not on BoE +5.29%. They just don't lend on them at all...!

JimU

I assume you're talking about the HSBC 1.79 + base tracker mortgage, currently 2.29%?

I applied for this back in January as a re-mortgage from A&L and the transfer completed a couple of weeks ago. At the time HSBC were offering the deal with 'zero fees' but I think this was for a limited period.

It requires a minimum level of equity (60% rings a bell) and mine is a part re-payment + part interest-only mortgage.

So it does exist ... but I did apply by phone not in branch, perhaps that's what you need to do?