HSBC Mortgage or Broker?

20vt-rs

Hi - I'm currently about to sort out a new mortgage deal, I've got an appointment set up for towards end of this month with a mortgage broker to discuss the requirments and see if she can find me something suitable. However I have been starting to look in advance and have found what looks like a good deal with HSBC.

So my current details are:

Property value £200k
Outstanding Mortgage £138k
LTV 69%

HSBC have a lifetime tracker at BOE rate + 2.49%, so currently 2.99% - It has a £599 set up fee.

I am coming off a fixed rate that I had secured 5 years ago when the rates went up, but they soon plumented and I wished I hadnt fixed! So tracker is appealing to me. The SVR I'd go on when off fix is 3.99% (Due 31st Aug)

I know that HSBC don't deal with brokers, so is my broker likely to find anything better than the above do you think?

Would I be wise to apply for the HSBC one and then see the broker, as I wouldn't want the HSBC product to be removed or go up in the meantime whilst I wait. Does applying myself cause the broker any issues when they search for me or affect my credit scoring, as HSBC will be doing credit scores if I apply direct.

Advice appreciated.

Thanks...

Gentoo365

You should really mention to the broker that you are looking at HSBC and then they can see what they can do.

It may be that they cannot get a better rate, but will be able to discuss whether or not you are likely to be accepted.

If your affordability is fine, and you do not have any credit issues then HSBC should be o.k.

One other thing is to consider the term of the tracker, and any exit penalty. If rates go up you could end up in a worse situation.

1) Fixed when rates went down
2) Tracker when rates went up

Fixed deals give you certainty, and you may decide that actually you would prefer to take a fixed rate now as you do not expect them to fall.

This is a discussion you will need to have with the advisor though. As you can go though in detail what you need

20vt-rs

Thanks for the quick reply gentoo! - The product at HSBC has no tie in or exit penalties, so thats good. Credit wise I think I am fine (no c/cards or loans). I may have a chat with her in the week and find out whats what. Just nervous about 1. upsetting my broker as she has been great in the past and 2. loosing a good deal that I may not be able to get with her. Tricky!

adindas

20vt-rs wrote: »

Hi - I'm currently about to sort out a new mortgage deal, I've got an appointment set up for towards end of this month with a mortgage broker to discuss the requirments and see if she can find me something suitable. However I have been starting to look in advance and have found what looks like a good deal with HSBC.

So my current details are:

Property value £200k
Outstanding Mortgage £138k
LTV 69%

HSBC have a lifetime tracker at BOE rate + 2.49%, so currently 2.99% - It has a £599 set up fee.

I am coming off a fixed rate that I had secured 5 years ago when the rates went up, but they soon plumented and I wished I hadnt fixed! So tracker is appealing to me. The SVR I'd go on when off fix is 3.99% (Due 31st Aug)

I know that HSBC don't deal with brokers, so is my broker likely to find anything better than the above do you think?

Would I be wise to apply for the HSBC one and then see the broker, as I wouldn't want the HSBC product to be removed or go up in the meantime whilst I wait. Does applying myself cause the broker any issues when they search for me or affect my credit scoring, as HSBC will be doing credit scores if I apply direct.

Advice appreciated.

Thanks...

IMHO people who want to learn various terms used in mortgage deal could easily find the best buy suit to them by themselves by looking into comparison site, One of the best one is here

http://moneyfacts.co.uk/compare/mortgages/best-sellers-mortgages/

In the past few month I have found that tracker mortgage with LTV 60/70% from HSBC is difficult to beat (if any)

20vt-rs

adindas wrote: »

IMHO people who want to learn various terms used in mortgage deal could easily find the best buy suit to them by themselves by looking into comparison site, One of the best one is here

http://moneyfacts.co.uk/compare/mortgages/best-sellers-mortgages/

In the past few month I have found that tracker mortgage with LTV 60/70% from HSBC is difficult to beat (if any)

Thanks, just had a look and there is a bank of china product that beats the HSBC one, however it has very steep fees! So probably not worth it.

I won't be able to get my broker until Weds at the earliest, what are the chances of HSBC pulling the product I'm looking at before then? I could apply today over the phone but still not sure if this is wise...

Dave_Ham

HSBC are unlikely to pull a product mid Bank Holiday.

You have done some research, understand the various different types and have a decent credit score. If your income is good and I mean amount, type of employment etc. and there is nothing sinister in your application approach HSBC.

They are selective but you appear in a good position.

Tell your broker upfront, they will respect this and understand. Worst thing you can do is waste all of your times, they will not find better than the HSBC product quoted.

Good luck

koexelek

Dave_Ham wrote: »

Tell your broker upfront, they will respect this and understand. Worst thing you can do is waste all of your times, they will not find better than the HSBC product quoted.

Exactly.

As a broker, you win some and lose some.
I'd never hold it against one of my clients for taking a better deal than I could offer.
Sometimes, you have to admit you are beaten.

20vt-rs

Thanks for your input and advice guys, Dave Ham and koexelek - appreciate your professional opinion, that has really helped, thank you... I'll give her a call on Weds and run through what I'm thinking, I'll also set up a discussion with the HSBC in the meantime to get that ball rolling just in case she says go for it!

Simon11

I've just signed the paperwork to agree to a HSBC Lifetime Tracker which is2.29% plus 0.5% without any up front fees. I'm a FTB buying a place under £125k with £60k deposit.

I haven't looked at the restrictions, but is that product not available foryourself?

20vt-rs

Simon11 wrote: »

I've just signed the paperwork to agree to a HSBC Lifetime Tracker which is2.29% plus 0.5% without any up front fees. I'm a FTB buying a place under £125k with £60k deposit.

I haven't looked at the restrictions, but is that product not available foryourself?

No didn't see that one, it's either because you've got a good LTV (48%) or it's a product you applied for a while ago that's been pulled...

Whilst we're talking fees - whats the general conecencus on paying a fee v's having a fee free mortgage with a slightly higher interest rate? On the HSBC mortgages it's around £19 per month more on the fee free product, and with the booking fee / valuation fee that is 40 months until I start paying more back that if I outlaid the fees up front. I seem to remember I added the fees to my mortgage last time but want to try an avoid it this time.

Perelandra

That HSBC tracker has been inching upwards recently. It was 2.19%+ BOEBR at the end of April, so I guess it went to 2.29%+, then 2.49%+.