HSBC New tracker rates

natman

Hello,

I am looking at remortgage deals at the minute and found that HSBC have released a new tracker mortgage deal.
Its for 60% Loan to Value -

It is a base rate tracker, tracking the rate at 1.99% above base rate. It has no set up fees or costs. therefore it has an interest rate of 2.49%. It is for the term of the mortgage also.
here is the link -

https://mortgages.hsbc.co.uk/product/A001002048001002049001002050-lifetime-tracker-special


Any comments you guys have would be great.
I am thinking of signing up for it as a remortgage away from Britannia Building society.

I was considering ING Direct tracker at 1.89% above base, but this has set up fees of nearly £1000

pinkteapot

We have exactly the same mortgage - have done since August 2010. Annoyingly there was a set-up fee then which was cancelled a couple of months later. Such is life.

Love the fact that being a life-time tracker, overpayments are unlimited from the outset. They are also exceptionally easy to do via HSBC internet banking (if you have HSBC bank accounts to transfer money from anyway) - literally a transfer to the mortgage account as you would to a savings account. By default overpayments reduce the term of the mortgage, not the monthly repayment.

Application process was hassle free.

Some of the brokers who post here might be along with a better deal. If this is the best deal for you though, I'd recommend it.

Re the ING deal, how much do you save on your monthly repayment by the rate being 0.1% less? If it's a big mortgage, the setup fee could pay for itself in a relatively short time. If it's a small mortgage then it might not be worth it.

natman

Hi, The rates last week were 2.09% above base rate and have only just reduced this week which is good. How much was your set up fees for this when you went for it?

My remortgage would be for £86,000, choosing 21 years.
ING Payments - £438 a month or cost £110, 376 over the period of the mortgage.
HSBC Payments - £442 a month or cost £111, 384 over the period of the mortgage.

So the ING over 21 years would cost minimally less, but the upfront costs do have a bigger impact.
I am not a HSBC customer at present but have started the initial process of applying on the telephone of getting a mortgage in principal etc.

It does seem a decent flexible product at the minute.
Thanks for your reply.

pinkteapot

We paid a setup fee of £999, and then it reduced to £0 within 2-3 months if I remember rightly. *sobs*

I do like the overpayment flexibility. 2, 3, 5 year deals tend to limit you to 10% a year during the offer period. I found an overpayment spreadsheet online where I log any OP's we make. So far we've knocked about three years and £7k in interest payments off the life of the mortgage. :money:

I don't think interest rates are going up in a hurry but we can afford higher repayments if they do so are comfortable on a tracker, making OPs while the rate is so low.