Remortgage to HSBC?

mambo69

I currently have 3 mortgage accounts with the nationwide, totaling around £46k, however i guess the actual redemption figure would be lower by an unknown amount to offset the interest no longer being paid.

I have looked at my bank to remortgate to, i earn 29k and only have a loan at £310 pm to cover, but how do i decide how much to ask for? being honest i was going to say 50k over 15 years as it gives me enough and a little extra. Is there anyway of working out how much less the amount to be paid back would be based on 33.5k outstanding over 14 years at 2.5%??

kingstreet

Your mortgage balance is shown on your mortgage statement each year. It doesn't include future interest, so you're not going to see it drop because you're paying it back early.

Statements normally show the amount required to repay this mortgage now, or similar words. Either that or phone the lender and ask them.

The redemption figure will be the last statement balance, less any capital paid off since the statement, plus and fees or penalties which might apply.

Can you explain the £46k and £33.5k figures, please?

mambo69

i have 3 accounts, the main one is currently on internet baking showing a balance of around 33.6k, one is around 10.8k and the other 2.1k

as the 33.6 is the highest then i guess i assumed it was like a loan and repaying early means you save early so i just wondered if there was a guesstimate tool to see how much

kingstreet

Your redemption figure is therefore the £46.5k, plus any discharge fees which might apply. Check your paperwork for details of the fees from when you took out the mortgage. As you mention 2.5%, I guess you're out of any penalty period applicable to previous offers?

You may be thinking of the old rule of 74 calculations where interest was added to a secured loan and rebates given for early repayment? Those never applied to normal residential mortgages, fortunately.

mambo69

yep i am on the 2.5% rate, tried to switch last night to the 3.39 fix for 2 years and I cant as i have 3 accounts with them not 1.

kingstreet

So Nationwide give you no opportunity to consolidate your sub-accounts back to one new product when they are all on SVR?

How odd. That would appear to be a great way of retaining quality customers. The way they do it seems to encourage borrowers to leave. Is that just for online business, is there a phone or branch option you could use instead, or is this across all business channels?

mambo69

its across the whole, all new accounts are treated as seperate, and they give you a new account number etc

its a PITA to be honest and one of the reasons i am looking to move away