HSBC confused

sprinkly_2

Hi, I hope some of you can help me, I have had some great info in the past from here.

Our 3 year fixed rate mortgage is ending on 31 July, we are currently on a repayment mortgage and have been paying nearly £500 per month.

We have just over 19 years left to go and owe around £60,000.

So we have had the letter to say the fixed rate is ending you will automatically go on to the variable rate at 3.94% (unless you change to another fixed) the current terms all still apply and your new monthly payment will be £65 per month!

I assume there is something wrong here, I called HSBC and tried to say this surley is too low for a repayment mortgage, he just said the interest rates have dropped (I do know this)!

Any info would be great, I am going to call them back as well.

Thanks

sprinkly:)

handytips

This is a mistake, typical of HSBC, they really are priceless. I would check your original offer letter. You should be able to get a deal similar or lower on a fixed rate via other lenders. If you have your insurances with HSBC then these will be expensive, and i also advise you to get your whole package checked by a good mortgage broker.

beecher2

It'll probably be closer to £365. It is clearly a mistake - phone back again and hopefully you'll get someone who will listen.

sprinkly_2

Thank you both.

I knew there was some sort of mistake, it also says on the letter if you want to stay on the variable you don't need to do anything!!!

I'm not that clever with these but thank goodness I'm not that thick, otherwise we would have been in a mess.

I will ring back, beecher2 that's much more the figure we thought it would be, also confirmed by doing a bit of a check on their website.

We do have our insuranses with them and all of my bank accounts, so I think a strong word would be good here, I have also been a customer for many years.

thank you again:)