Confused by morgage advisor

coops82_2

Hi

I have a 5 year £109k fixed rate morgage of 5.9% with HSBC which ends next March. I have recently inherited some money and could reduce my my morgage. I thought it would be a good idea to switch to tracker (currently 2.7% with no sign up fees) and pay the early repayment charge of £900.

I could make up the cost of the early repayment charge in 3 months. When I went to see my morgage advisor he said this wasnt a good idea and I should just bank the money until my fixed rate ends next March.

I am confused as to why he advised this. Any ideas?

Thanks

DVardysShadow

If you could make up the ERC in 3 months, either he is incompetent or not listening or there are some issues with your case. Is he the HSBC mortgage adviser? Because if he is, he may be on some incentive to prevent you from changing product.

coops82_2

To be honest I dont think he was listening. He seemed more concerned with making me take out redundacy cover which I dont have now and would need less if I changed my mortgage,

dimbo61

You need to do your homework!
Now what does your mortgage revert to at the end of the fix?
Is it the SVR and what is that with your lender HSBC ?
What interest rate are you getting on savings now ? have you put some into cash ISA,s for you and the other half!
Loan to value now and if you paid off a lump sum are important.
Your income ( things have changed big style in the mortgage market)
Long term plans, age, kids, retirement, other investments etc
Is the ERC only £900 and do you want a tracker,fixed,offset deal
Sort the mortgage question out first before you look at insurance

dunstonh

When I went to see my morgage advisor

Define mortgage adviser. Are you talking a local independent or a bank clerk at HSBC?

anh1904

I would seek truly independant advice from a whole-of-market advisor. As with any specialist advice, expect to pay for it, or understand the remuneration the advisor can or will get.