HSBC Fixed 5 Year - Fee Free Mortgage

Lynxs

Hello all,

I am a first time buyer and i've been looking for mortgages for a couple of months now, comparing rates, fee's, fixed / tracker etc.

I have just saved up for my house deposit.. and it's now time for me to save up for mortgage / lawyer fees.

Rather than saving for another 3 / 4 months, this HSBC Fee Free mortgage stands out.

The mortgage has competitive rates, for 5 years fixed, with no fees.

Has anyone had any dealings with this product choice? Am I missing something with this? I really can't seem to understand why they can include all the fee's, on a competitive rate.

Any advice on this would as always be very appreciated.

All the best.

kingstreet

We need to know the rate, loan to value etc.

The amount you borrow may make a fee-free product absolutely correct for you, or alternatively, it may make paying a fee a good idea.

On a five year fix, paying a fee spread over the term may get you a much better interest rate.

Lynxs

kingstreet wrote: »

We need to know the rate, loan to value etc.

The amount you borrow may make a fee-free product absolutely correct for you, or alternatively, it may make paying a fee a good idea.

On a five year fix, paying a fee spread over the term may get you a much better interest rate.

Thanks for your reply.

The LTV is 90%

I am looking for borrow £88,000 - with a £8,800 deposit.

I look forward to your reply.

kingstreet

The 4.89%?

That seems the best option for you. At your borrowing level, fee-free is the right way to go and at 90%, there's nothing better with a fee option.

For example, the next best deal at 4.99% with Post Office is a worse rate and has fees of £1,410.

HTH