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HSBC Fixed Mortgage Redemption Fee small print
CrazyHorseB
Posts: 34 Forumite
I currently have a fixed rate mortgage (at 4.4%) with HSBC due to end at in August 2014, but I'm considering switching early seen as the current rates on offer are so attractive.
My redemption statement says:
"4.1 If you are taking a new fixed rate mortgage on repayment of this loan:
If you are transferring the fixed intetest rate to a bew HSBC Banj mortgage then you don't need to send the repayment fee. Then new loan should be taken at the same time as the existing loan is repayed and must be for at least the same amount and term.
In this case, when all our quoted lending has been repaid, we will release any security we no longer require.
If the new fixed rate mortgage is for a lower amount, please send the quoted early repayment fee and we will refund the proportionate amount"
... now this reads to me, that if i'm taking out a new mortgage with HSBC for at least the amount I currently owe and at least the same fixed term, then I don't have to pay the £2.5k redemption fee.
I phoned them (without the actual wording to hand), but the [un]helpful help desk lady said I would have to pay the redemption regardless and that I wouldn't be able to add the fee to any new loan. How does this statement read do the collective here?
My redemption statement says:
"4.1 If you are taking a new fixed rate mortgage on repayment of this loan:
If you are transferring the fixed intetest rate to a bew HSBC Banj mortgage then you don't need to send the repayment fee. Then new loan should be taken at the same time as the existing loan is repayed and must be for at least the same amount and term.
In this case, when all our quoted lending has been repaid, we will release any security we no longer require.
If the new fixed rate mortgage is for a lower amount, please send the quoted early repayment fee and we will refund the proportionate amount"
... now this reads to me, that if i'm taking out a new mortgage with HSBC for at least the amount I currently owe and at least the same fixed term, then I don't have to pay the £2.5k redemption fee.
I phoned them (without the actual wording to hand), but the [un]helpful help desk lady said I would have to pay the redemption regardless and that I wouldn't be able to add the fee to any new loan. How does this statement read do the collective here?
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Comments
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... now this reads to me, that if i'm taking out a new mortgage with HSBC for at least the amount I currently owe and at least the same fixed term, then I don't have to pay the £2.5k redemption fee.
No. The £2500 is an ERC (early repayment charge). This is different to the redemption charge being talked about.
The redemption charge is only charged when you change provider or the mortgage gets to the end of the term. The ERC is levied if you wish to buy yourself out of the deal you agreed to.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
thanks... thats a shame, I must have read it 20 times and just couldn't see why I was so wrong!0
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Are you planning on going on to another mortgage with HSBC at better rates? You will probably find that this is not possible - if you come out of the fix early you will have to go to another lender rather than another product with your current lender.0
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