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HSBC Tracker products - 60% a bit sparce

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I'm currently with HSBC on an 80% LTV product, looking at injecting some savings into the mortgage to bring my LTV down and get a better rate. Looking on their site, the best rate on tracker seems to be at 70% LTV unless you want to pay a whopping fee, is there any reason for this does anyone know?

Currently 70% LTV is:
BOE plus 2.19% for a £599 fee or
BOE plus 2.49% fee free.

60% LTV is:
BOE plus 1.88% for a £1499 fee or
BOE plus 2.19% fee free.

The 70% LTV bracket looks pretty good!

On a side note, what is a good guide to decide if the fees are worth it or not with a tracker mortgage? I presume the best way is to work out the difference in monthly payment on a fee paying product v's fee free and see how many months it would take to pay that back?

:beer:
Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

Comments

  • lee111s
    lee111s Posts: 2,987 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker
    How much have you got left on your mortgage and over what term?
  • 20vt-rs
    20vt-rs Posts: 715 Forumite
    Part of the Furniture 500 Posts Mortgage-free Glee! Name Dropper
    lee111s wrote: »
    How much have you got left on your mortgage and over what term?

    18 years left to run
    In the 80% LTV bracket
    On an HSBC tracker for life at 2.79% plus BOE rate (Currently 3.29%).

    I can get my morgage comfotably into the 70% LTV bracket but would struggle to hit 60%. So I'm considering moving from my +2.79% rate to either the fee free + 2.49% or £599 fee + 2.19%

    Would stick with same lender to make this easy, still undecided if the £599 fee is worth it or not. Moving to BOE+2.49% would save me approx £25 per month and woudn't cost me anything, so a no brainer there, but the BOE+2.19% would save me approx £45 per month but with an initial outlay of £599. If rates stay the same that would take me 2.5years to break even.

    Inspiration welcomed :o
    Mortgage Free Wannabe Light Bulb Moment (Early 2012, started May 2012)
    Original Mortgage Amount - £147k (Oct 2005) / Term 27 years (To 2032)
    Target to Pay off by 2026 by overpaying - Officially Mortgage Free June 2023!
    Balance Reduction Progress: May12 £128k / Nov13 £120k / Dec15 £107k / Mar18 £87k / Mar21 £46k / Jun22 £28k / Jun23 £0!!

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