HSBC mortgage - am i missing a trick?

emeraldbugle

This seems to good to be true.

2.09% + bank of england base rate for the life of the loan

No tie in, unlimited overpayments, can move the mortgage elsewhere without penalty.

No fees.

https://mortgages.hsbc.co.uk/product/A001002122001002123001002124-lifetime-tracker-fee-free-special

Am I missing a trick?

Thanks

pinkteapot

Errrr no?

We have their lifetime tracker mortgage.

The maximum LTV is 60%, so you need 40% deposit/equity. They do lifetime trackers with higher LTVs and higher interest rates accordingly...

We got ours last summer at BOE base rate +1.99% but paid a £999 booking fee. They scrapped the booking fee a few months later. That aside, we're happy with it and making high overpayments.

Obviously as a BOE base rate tracker you are taking on the risk that your payments will increase. So long as you can comfortably afford to keep repaying as the base rate goes up, it's a good deal. We're hoping to pay off the mortgage before the economy perks up and interest rates start rising. Would love it if we can pay it off having never paid more than 2.49% interest. Unlikely though.

Thrugelmir

emeraldbugle wrote: »

Am I missing a trick?

Maximum LTV 60%.

emeraldbugle

Thrugelmir wrote: »

Maximum LTV 60%.

Thanks for the response. The LTV is fine for us.

pinkteapot

If you have HSBC bank accounts, overpayments are as simple as it gets. Log on to internet banking and you can just transfer money to the mortgage account from a current/savings account - just as easy as moving money from your current account to a savings account. They don't recalculate your monthly mortgage repayment unless you specifically ask them to, so by default overpayments reduce the term.

emeraldbugle

pinkteapot wrote: »

Errrr no?

We have their lifetime tracker mortgage.

The maximum LTV is 60%, so you need 40% deposit/equity. They do lifetime trackers with higher LTVs and higher interest rates accordingly...

We got ours last summer at BOE base rate +1.99% but paid a £999 booking fee. They scrapped the booking fee a few months later. That aside, we're happy with it and making high overpayments.

Obviously as a BOE base rate tracker you are taking on the risk that your payments will increase. So long as you can comfortably afford to keep repaying as the base rate goes up, it's a good deal. We're hoping to pay off the mortgage before the economy perks up and interest rates start rising. Would love it if we can pay it off having never paid more than 2.49% interest. Unlikely though.

Thanks. Fingers crossed it is approved.

pinkteapot

Good luck.

Thrugelmir

emeraldbugle wrote: »

Thanks for the response. The LTV is fine for us.

Then 2% above base will almost certainly be as good as you are likely to ever get. Sub 2% rates are in the past.

Catslovelycats

I'm looking at this mortgage as well. My discount ends in Feb and I;m already with HSBC. They were helpful and friendly 2 years ago and I'm hoping they will be again this time round! Good luck OP.

inkiboo

Thrugelmir wrote: »

Then 2% above base will almost certainly be as good as you are likely to ever get. Sub 2% rates are in the past.

Apart from right now. HSBC have a 1.89% over base offer on now.

Peelerfart

pinkteapot wrote: »

If you have HSBC bank accounts, overpayments are as simple as it gets. Log on to internet banking and you can just transfer money to the mortgage account from a current/savings account - just as easy as moving money from your current account to a savings account.

I do transfers from Nationwide to my HSBC tracker mortgage and it's just as easy.