ERC HSBC to First Direct

redfrock

Just doing some figures as seems to make sense to move our mortgage across to First Direct from HSBC, especially as we have moved all our banking across.

My query is that given they are in reality the same company, are HSBC likely to enforce the ERC?

We would probably still make a saving if they did enforce it, but if we go for the mortgage that we want, taking into account all the fees, the saving would be negligible

kingstreet

Yes. The ERPs are payable. It does not matter who you are moving to, the ERP is compensation for the market counterparty which provided the rate swap for whatever offer you are on.

bigadaj

Also assuming they will do the transfer, banks generally won't let you remortgage from a current product onto a new one, so you have to change banks, given that they are effectively the same bank will first direct accept this?

Thrugelmir

redfrock wrote: »

My query is that given they are in reality the same company, are HSBC likely to enforce the ERC?

They are different companies within the same group. So you would need to remortgage and incur any costs of doing so, including incurring the ERC.

_Andy_

redfrock wrote: »

Just doing some figures as seems to make sense to move our mortgage across to First Direct from HSBC, especially as we have moved all our banking across.

My query is that given they are in reality the same company, are HSBC likely to enforce the ERC?

We would probably still make a saving if they did enforce it, but if we go for the mortgage that we want, taking into account all the fees, the saving would be negligible

They're not 'the same company' and yes the ERC would apply

redfrock

_Andy_ wrote: »

They're not 'the same company' and yes the ERC would apply

First Direct are a division of HSBC aka a member of the HSBC group. That's why I said 'in reality'.

Thrugelmir

redfrock wrote: »

First Direct are a division of HSBC aka a member of the HSBC group. That's why I said 'in reality'.

Companies are totally separate legal entities.

A division can be part of the same Company as another division.

opinions4u

Sometimes customers expect too much.

HSBC wouldn't waive the penalty to move to another HSBC product. Don't expect them to better this for you leaving them!

_Andy_

redfrock wrote: »

First Direct are a division of HSBC aka a member of the HSBC group. That's why I said 'in reality'.

I'm aware of that fact. Doesn't change a thing though in terms of your question.