MSE News: HSBC launches lowest-ever five-year fixed mortgage

SG27

Not cheaper 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.

TrickyDicky101

Sheldor wrote: »

I got a lifetime tracker mortgage from HSBC two years ago that is 1.79% above the BoE base rate. It had no booking fee.

They don't make much money on such a rate.

Now, when I asked them about borrowing 5k for a homeowner loan to pay for major works to the block I live in (they said they couldn't just expand my mortgage) - I was told I could only borrow a minimum of 10k at a higher interest rate plus there was a massive booking fee that amounted to somewhere around 10% of the loan value.

It's absurd that they're allowed to make such enormous profits in this way.

So go elsewhere. If you can't substantially beat that cost elsewhere, then it should probably tell you something (ie that they aren't making absurd profits).

System

Sheldor wrote: »

I think that would be too high. What is it they do for this money that isn't covered by the money they're making off the interest?

I got a lifetime tracker mortgage from HSBC two years ago that is 1.79% above the BoE base rate. It had no booking fee.

Now, when I asked them about borrowing 5k for a homeowner loan to pay for major works to the block I live in (they said they couldn't just expand my mortgage) - I was told I could only borrow a minimum of 10k at a higher interest rate plus there was a massive booking fee that amounted to somewhere around 10% of the loan value.

It's absurd that they're allowed to make such enormous profits in this way.

To be fair it is still a good deal. If you are borrowing 150k it works out cheaper than a 5 year fix (no fee) at half a percent more. Its up to you as the customer to be prepared and do all of your calculations offsetting the fee against the interest rates. Any loan under 3% is cheap; fee or no fee.

Pincher

If you can swing it, 0% Balance Transfer is simpler for £5k.

I get a year's worth of 0% BT to a current account from Virgin Amex with 2% Fee. Next year, you can get a Barclaycard 22 month 0% BT at 3% Fee. The 3% is over 22 months, so it's like a 2% Fee for one year. You can transfer back to Virgin for another 2% for the fourth year, but by that time you have probably paid off a big chunk due to minimum payment anyway.

Yorkie1

blueruby wrote: »

Have to find for a mortgage on a 250k property with a deposit of 50 - 100k. Is the HSBC 5yr fixed at 2.99% with 1.5k fees the best deal out there? Have not been able to find a mortgage with a lower rate of interest. Have I missed looking at better deals? Dont mind about the type of mortgage as long as its the best to go for. Could someone advise please? thanks.

I see you've already started your own thread (which is the best thing to do) - it's not a great idea to post multiple times as it wastes peoples' time and efforts if they reply on one thread, only to find out that someone else answered previously.

Finboy

Given the fact that the government are again pumping billions of pounds into the banks and that this time the loans are going to be tied to the banks re-lending. Does this not mean that there is now a substantial downward pressure on loan rates? This government lending does not only get cheaper for the banks if they re-lend but it is in place for the next four years. So the HSBC deal should not be out on it's own for long, or is my optimism misplaced?

michaels

Is this deal hsbc saying 'we can borrow at LIBOR and you can't, nah nah di nah nah' to the rest of the market? Next lowest 5 year fix is currently 80 basis points higher!!!

blueruby_2

i didnt know how to remove the post i made on this thread, if you could tell me how i'll delete the duplicate post. thanks.

Yorkie1

blueruby wrote: »

i didnt know how to remove the post i made on this thread, if you could tell me how i'll delete the duplicate post. thanks.

Click edit, and you should get an option to delete. It will ask you to confirm that you want to delete, and gives you the option to input why.

henm2

If you have already got an existing mortgage with HSBC and want to borrow extra on a tracker mortgage then the minimum amount that can be applied for with HSBC is as mentioned before is £10K.

However if you only really want an extra £5K then you can borrow the £10k extra and immediately pay back £5K. HSBC tracker mortgages are really that flexible with no penalties for overpayment back of lump sums. Also amongst the many different offers available there are plenty of fee free deals. Cheapest tracker is currently 2.99%.