We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

is it cost effective to move from hsbc 3% to 2.79%

hi i borrowed
51k over 12 years
paying 421 per month back
its a life time tracker at 2.49 + .5 boe rate so 2.99 %

i can over pay and switch to any mortgage apparently.
so hsbc now offer a 2.29 + 0.5 boe = 2.79 % tracker

how much will i save per year if i switch?

Comments

  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    roughly 0.2%X £51k about £100 pa, are there any fees? is it a lifetime tracker as well?
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • cv65user
    cv65user Posts: 145 Forumite
    http://www.moneysupermarket.com/mortgages/calculator/

    SAYS payment will go down to 417 . a saving of 4 per month . so 4 per month * 12 months in a year * 12 duration of morgage= so save 576 over the course of mortgage ?
  • cv65user
    cv65user Posts: 145 Forumite
    Wh05apk wrote: »
    roughly 0.2%X £51k about £100 pa, are there any fees? is it a lifetime tracker as well?

    its this one here

    https://mortgages.hsbc.co.uk/product/A001003303001003307001003311-lifetime-tracker-special-fee-free
  • cv65user
    cv65user Posts: 145 Forumite
    yes no fee and also life time tracker with option to over pay at any point.
  • Looks like a fair deal, im with first direct on a 3.49% fixed interest only for 2 years fee and solictor fee free, i took a punt as i wasnt sure what the interest rates would do, they have been low for so long.
    The only downfall is that it is a tracker, if the rates do rise, you will be crying.
    Its a gamble, fixed versus the tracker, HSBc and first direct are linked companies, if hsbc are as good as first direct you will be pleased, first direct are fab.
    The other cost to factor in when switching is the solictors and survey fees, they can top up a relatively low looking interest rate.
    Mortgage free in June 2015.Yay!Now Debt free!... well i owe the wife a few quid.....
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.