HSBC Interest Only

Wobblydeb

I am interested in the HSBC 5Yr fixed rate interest only mortgage, but cannot see anything to say whether it is offset or not.

Any ideas?

handytips

Firstly how are you going to pay the loan off at the end of the term ? Just because it is offset and a proposal to overpay will not wash i am afraid, neither will the old 'Sell property at end of term' suffice.
There are a number of factors you need to consider before jumping into an application.

Peelerfart

I can't even find the product you're referring to I'm afraid, but usually offsets for HSBC are covered by First Direct.

pwllbwdr

I'm pretty sure HSBC have not offered an offset facility on any of their mortgages. First direct do.

handytips

Have a look at the Woolwich offset products, they are and always have been the best on the market, closely followed by Scottish Widows. Why on earth do people put themselves through the wringer with the two lenders mentioned above is beyond me.

Peelerfart

handytips wrote: »

Why on earth do people put themselves through the wringer with the two lenders mentioned above is beyond me.

HSBC have always been fine with me, no problems at all

Wobblydeb

handytips wrote: »

Firstly how are you going to pay the loan off at the end of the term ? Just because it is offset and a proposal to overpay will not wash i am afraid, neither will the old 'Sell property at end of term' suffice.
There are a number of factors you need to consider before jumping into an application.

Thanks, but believe me, I am not jumping into an application. I work in corporate finance and am inordinately fond of spreadsheets and financial planning in my free time

handytips wrote: »

Have a look at the Woolwich offset products, they are and always have been the best on the market, closely followed by Scottish Widows. Why on earth do people put themselves through the wringer with the two lenders mentioned above is beyond me.

Thanks very much, I will definitely have a look at those two. I am curious as to what you mean by "put themselves through the wringer"? Is this from an application perspective or actually running the mortgage? I'm a FD customer, previously with HSBC (including mortgage) and found them both to be great at customer service. Times do change though, and if there are hidden pitfalls I'd be interested to hear about them.

Peelerfart

Call me cynical Wobblydeb, but i think the problem here is HSBC/FD don't use mortgage advisors.

Now I may be wrong but I think that may be the root cause of the comment.

Wobblydeb

Peelerfart wrote: »

Call me cynical Wobblydeb, but i think the problem here is HSBC/FD don't use mortgage advisors.

Now I may be wrong but I think that may be the root cause of the comment.

Well all comments are welcome, it's interesting to get suggestions and recommendations.

However, on a quick run through the Woolwich offering a) there is no fixed rate offset available which is what I'm looking for, and b) it is offset by Barclays accounts which both me and OH have previously ditched due to poor service.

The Scottish Widows rates (and fees) are higher than HSBC/FD so that's a no-go.....

handytips

Nothing to do with that the products are only available direct, but lots of their applications get declined and we usually have to pick up the pieces, that all, nothing about not making money etc etc, if you have insurances with HSBC such as Life and Home, then i will guarantee you this. You are paying well over the odds for the products and there are better products at a better price out there. Good luck to you all.

Wobblydeb

handytips wrote: »

Nothing to do with that the products are only available direct, but lots of their applications get declined and we usually have to pick up the pieces, that all, nothing about not making money etc etc, if you have insurances with HSBC such as Life and Home, then i will guarantee you this. You are paying well over the odds for the products and there are better products at a better price out there. Good luck to you all.

handytips - I wrote one reply, but have deleted it because it went against my signature line. With the aim of giving you a truth that is not thrown like a stone, here goes.....

You would get much further by acknowledging the benefits of lenders you may be unable to recommend, and your audience (online or otherwise) with some intelligence and common sense. You will then be able to point out the downsides of lenders you cannot recommend with much more credibility and achieve more buy-in from your audience.