Worth switching mortgage for a 0.6% cut?

blizeH

Hi,

I currently have a mortgage of around £60,000, with 24 years left to pay it off. It's with the C&G and will shortly track at 2.49% plus the base rate.

Partly due to being absolutely fed up with a lack of online service for C&G (hate having to phone them, being on hold for ages and answering a dozen security questions) but also the fact a HSBC morgage tracks at 1.89% plus the base rate, do you guys think it'd be worth me paying the £199 (£100 to C&G for a cancellation charge, and £99 to HSBC for the initial fee) to switch?

According to my calculations I'd actually be saving a few hundred a year, so mathematically it makes sense, but are there any other factors to consider?

Thanks

Thrugelmir

The question is, do you meet HSBC's lending criteria?

Peelerfart

I've had no problems with my HSBC tracker at all.

They've been fine, and their website for looking at mortgage accounts is a doddle to operate and make overpayments if you want to.

If,as Thrugelmir says,you meet the criteria,then yeah.

blizeH

Thanks guys, I do meet the criteria so almost certain I'll go with it, will call C&G tonight to find out if I can actually switch over now, got a feeling I'm tied in for a little while longer (maybe 3 months?) but if I'm okay, I'll switch ASAP

Niksan

How long as the mortgage been running for and what type of product are you currently on? Only paying £100 for cancelation seems a little low for C&G I know I have a closing charge of £250 with C&G and I'm currently on variable so have no additional costs if I was on a fixed deal etc.

blizeH

Thanks Niksan, I've been on the mortgage for around 13 months I think, and it's after 16 (maybe) that I can switch without paying obscene early repayment charges - I shall ring tonight to check (woo no online service)

Niksan

Yeah, having no online option is a bit of a pain to say the least, however, the phone staff are good, and as long as you use saynoto0870 you needn't use the premium number.