Britannia Mortgage 5 year Fixed - no fee

Lifes_Grand_Plan

With HSBC on a lifetime tracker at the moment paying 2.79%

Tempted to switch to the fix but a) I overpay massively each month so would lose this unless I reduce the term and b) I am wondering if HSBC might reduce their own rates in due course.

piccybabes

Blueskys wrote: »

Spoke to the call centre this morning. They have changed the product code for the mortgage for me, after going through to their new mortgage enquires dept. - saving £849!

hmm- Co-op are charging me £100 to switch but it may be that we have signed agreement document and sent back.

Still £750 saved.

michaels

piccybabes wrote: »

hmm- Co-op are charging me £100 to switch but it may be that we have signed agreement document and sent back.

Still £750 saved.

Shouldn't they refund the £150 in that case?!

ohwattagosiam

Lifes_Grand_Plan wrote: »

With HSBC on a lifetime tracker at the moment paying 2.79%

Tempted to switch to the fix but a) I overpay massively each month so would lose this unless I reduce the term and b) I am wondering if HSBC might reduce their own rates in due course.

That HSBC lifetime tracker is one that I'm considering switching to.

I'm a quite torn between the two deals. How long it takes HSBC to respond to the Co-op deal is anyones guess, if they respond at all.

Do you overpay by more than 10% of the value of your mortgage each year? If not, it may be worth switching... :think:

Lifes_Grand_Plan

ohwattagosiam wrote: »

That HSBC lifetime tracker is one that I'm considering switching to.

I'm a quite torn between the two deals. How long it takes HSBC to respond to the Co-op deal is anyones guess, if they respond at all.

Do you overpay by more than 10% of the value of your mortgage each year? If not, it may be worth switching... :think:

Just did a quick sum and I actually overpay exactly 10% of the total amount each year. With HSBC when I was fixed, they allowed 20% of the monthly payment to be overpaid... which was a lot less (unless i'm being stupid here)

Anyway another consideration - is the Britannia mortgage portable? We are looking to move (all being well) in the next year or two so being tied in for 5 years with a big exit fee would be bad.

ohwattagosiam

Lifes_Grand_Plan wrote: »

Just did a quick sum and I actually overpay exactly 10% of the total amount each year. With HSBC when I was fixed, they allowed 20% of the monthly payment to be overpaid... which was a lot less (unless i'm being stupid here)

Anyway another consideration - is the Britannia mortgage portable? We are looking to move (all being well) in the next year or two so being tied in for 5 years with a big exit fee would be bad.

You're not being stupid. 20% of the monthly payment is definitely less than 10% of the total balance of your mortgage each year.

I understand that the mortgage is portable. However, you'd need to give them a quick call to confirm it.

piccybabes

michaels wrote: »

Shouldn't they refund the £150 in that case?!

Regrettably this was a £150 non refundanble booking fee.

I will look at the conditions tonight though!

kingstreet

What you are seeing here is the playing field being flattened by FLS.

HSBC already has the cheap funding facilities which has allowed it to undercut the other players in the mortgage market in the last year or two.

With FLS, any lender taking part has seen its funding rates cut down to about 0.75%, so they can all use this to compete more effectively.

As the year goes by, there will be more and more pressure on margins to enable lenders to meet their lending targets, resulting in lower rates for the better quality business.

There will be a sub-2.5% 5 year fix before too long.

michaels

piccybabes wrote: »

Regrettably this was a £150 non refundanble booking fee.

I will look at the conditions tonight though!

You and me both, especially if others have got away without paying the £100 switching product fee....if you switch to a product with no booking fee then surely you should not have to pay a booking fee....

michaels

kingstreet wrote: »

What you are seeing here is the playing field being flattened by FLS.

HSBC already has the cheap funding facilities which has allowed it to undercut the other players in the mortgage market in the last year or two.

With FLS, any lender taking part has seen its funding rates cut down to about 0.75%, so they can all use this to compete more effectively.

As the year goes by, there will be more and more pressure on margins to enable lenders to meet their lending targets, resulting in lower rates for the better quality business.

There will be a sub-2.5% 5 year fix before too long.

I'm hoping not too long is before 8th may