HSBC/FirstDirect mortgages

malcolmffc

Hi,

I'm a FTB looking for a mortgage, with a 90% LTV. It looks like our best option would be to fix for as long as possible as I can only see interest rates going up in the next few years.

The best deal I've found so far is with HSBC, who are currently doing a 5-year fix at 4.79% (£999 fee.) However, I've heard bad things about HSBC from others - that the mortgage process takes forever and they make things complicated by making you get involved with their own legal people. Does anyone have any experiences with them.

Also, has anyone been able to find a better deal for 5 year fixed at this LTV?

malcolmffc

Just found a 5-year mortgage with Yorkshire BS at 4.74% - any experiences with them?

GMS

Those rates wont be beaten. If you qualify then grab them.

How much are you borrowing. There may be alternatives with lower arrangement fees but higher rates. If the loan justifies the fee over 5 years then it's worth paying it.

May be worth a chat with a broker to see if there is a better deal out there. Also look at applying for £100 less than 90% as this can sometimes mean a lower credit score required as you are not after 90% exactly.

bigadaj

Whether you fix is a personal decision, the best products will only be available to those of low risk and good credit history. If the mortgage is stretching you then it may well be a good move to fix. If not then more thought may be required, for exMp,e the five year fixes you detail, are nearly 5%, and current trackers can be well below 3%, so if you assume base rates don't move for two and half years, which many would, for the fix to pay off over the second half of the mortgage then rates would need to be above six per cent, certainly not impossible but unlikely given where we are now.

Having said that if you and told people ten years ago that base rate would be below 1% you may well have been locked up.

DannyboyMidlands

I applied for a FD mortgage and it was quick, simple and painless. Though mine was 75% LTV and less than 2.5x salary, which might have helped.

Yorkie1

Your thread title implies that you might think that HSBC and FD are the same entity for mortgages; just thought I'd point out that they are completely separate organisations.

bigadaj

Hsbc own first direct.

malcolmffc

Just to come back now I've had some experience...thanks for the info.

I ended up applying for a 3 year fix with YBS at 4.64% and got accepted yesterday. The 2.99% rates some have mentioned above above were of course not applicable at 90%.

Looks like I chose a good time to apply as the 4.64% has since been pulled and replaced with a 4.94%.

I did try a couple of brokers, but both of their recommendations would have had me paying 5.5% which didn't justify the cost to me.

Dave_Ham

Good stuff, YBS are slow typically so if speed is important ensure you get any documents requested back quickly and efficiently..

Good luck

[Deleted User]

I've just remortaged from Santander to HSBC (fee free 2.79%) and was surprised how quick the process was. Plus they keep you up to date with the legal side via text/email/website portal. All very efficient Not a bad word to say about any part of the process...