HSBC 2.99% 5yr Fix

bigmac12

Launching on Friday apparently.

Hefty £1499 upfront fee and need 40% deposit though.

Wh05apk

Looks like a great deal though if you qualify................

Rates like this tell a lot about where the market think medium rates are going - in this case nowhere, so make hay while the sun shines!

Morgage_Confused

Is that the lowest ever 5 year fix?

The last low one was YBS at 3.19% with the same fees if I remember rightly?

latecomer

I'm hoping it stays around for a few months as we are tied in until Feb next year on our existing 5 year fix at 5.39%

harvey115

latecomer wrote: »

I'm hoping it stays around for a few months as we are tied in until Feb next year on our existing 5 year fix at 5.39%

You might be better off paying an ERC and going on to the new deal. Check with the lender to see how much ERC you would be liable to pay if moving off to another deal.

Morgage_Confused

I'm on a tracker at 2.68%.
I'm tempted by this, but its touch and go with the fee. I'm just thinking how happy I would be to chop another 1500 off my current mortgage instead of paying it to HSBC. Mind you i'm tracking the barclays base rate so anything could happen to my tracker.

Morgage_Confused

latecomer wrote: »

I'm hoping it stays around for a few months as we are tied in until Feb next year on our existing 5 year fix at 5.39%

Don't the mortgage offers normally last for 6 months. So you may be able to apply soon, get the deal and wait it out rather than paying any ERC

Stubbcat

Please correct me if I'm wrong (no really, I'm planning to do this, so for the love of god, correct me if I'm wrong). The "5yr fixed special fee free" (from the same bank) with the 3.49% rate works out as cheaper over those 5 years than the headline grabbing 2.99%. And if you have £1499 burning a hole in your pocket why not simply borrow £1499 less and go for the fees free.

SG27

For me borrowing £100,000.

At 2.99% with £1499 fee: repayments £474 x 60 = £28,440 + £1499 = £29,939 total 5 year cost.

At 3.49% with no fee, so borrow £98,501: repayments £493 x 60 = £29,580 total 5 year cost.

So the higher rate with no fee is slightly cheaper assuming I use the £1499 fee for the deposit. Which I would.

majendie72

Quick question about this, sorry if it's in the wrong place.
I currently have an outstanding mortgage of about £45,000. Fixed rate of 5.36 till 2016, value of the house is approx £150,000.
My question is really am I able to move to another lender, for example this deal, as I currently don't have a salary. I have an income but am not working till next year when my youngest child starts school.
Income consists of housekeeping from working partner and small amount of benefits.
No missed payments or other nasties on my credit file.
(partner's income can't be counted on a joint mortgage as he's in the DRO wilderness for another 5 years)
Thanks for any info, I'm assuming it's a no go until I'm back at work...

dimbo61

Hi majendie72,
You are right if you have no income then you cant move mortgage lender.
You have the security of your current fix even if the rate is a little high at 5.36% but the good news is that you only owe £45K.
Now with such a low amount the 2.99% deal from might not suit you as the £1499 fee is over 3% of your outstanding mortgage and that does not include costs to change lender ( legals, survey, exit fees, ERC )
What you can do is read the mortgage paperwork or ring your mortgage lenders call centre and check if you can overpay.
Even on a fixed rate deal many mortgages allow overpayments of upto 10% a year!
If you can overpay as this saves you 5.36% TAX FREE