Mortgage Product Fee

clarky_cat

Hi, I'm a first time buyer and moving in my new place next month. I agreed a mortgage with HSBC over a month ago with a 2 year fixed rate of 4.99% + had to pay a product fee of £399. I've been on their website today and the rate is now 4.49% with no product fee.

I phoned them to see if I can switch to the 4.49% and they're getting someone to call me back. Is it straight forward to switch to this new rate?

Also, they said the product fee I've already paid is non-refundable. Can anyone confirm if there is any way of getting this back or have I lost it?

Thanks

Senior_Paper_Monitor

If it was 'non refundable' you will not get it back.

As to their policy about the switch I can't help - if they don't want to do it they may well insist on a new application from scratch, but on the other hand they may simply say yes.

dunstonh

Is it straight forward to switch to this new rate?

New offer letters. Would add about a week to the process at most.

Also, they said the product fee I've already paid is non-refundable. Can anyone confirm if there is any way of getting this back or have I lost it?

only at their goodwill. Normally you would say it is non-refundable and therefore means non-refundable.

clarky_cat

Thanks for the replies. Rang them up last week and they're going to give me the lower rate but, as suspected, I won't get back the product fee even though I won't be on that product.

dimbo61

All the same well done on getting a 0.5% reduction on your mortgage for the next 2 years and you will make back the £399 in what! 2/3 months ?

Jessikita1983

HSBC are really good at letting you switch. When you reach the next LTV % just log into internet banking and click "switch mortgage", skim down the rates and put in to swap. Never dealt with an easier company!