HSBC mortgages with current account

dylanpressman

Hello all - I'm new here so apologies if this has been covered before.

I'm currently looking at taking out an HSBC mortgage which requires you to have a current account with them. I don't bank with them at the moment.

One person I have spoken to has said I will need to make it my main account, with all direct debits coming out of it. Someone else has said it needs to have regular amounts paid in.

I was wondering if anyone has a mortgage like this and whether they use the current account or just leave it dormant.

Thanks in advance!

amnblog

Lenders like HSBC are interested in getting your banking business, credit card, savings and investment business, and even your pet insurance via the mortgage.

There will therefore be conidtions which you can probably find on there website or ask them to send them to you.

20vt-rs

HSBC do offer other mortgages that don't require you to have a current account with them. I only ever recall seeing HSBC mortgage products where you need to have an advance account with them, this means you get a slightly better rate, but be careful, as the account you need costs £12.95 a month. If you do the sums you may find that it is better off going on the slightly higher rate as the £12.95 a month may be more than the difference in rates. Also do the same sums on their fee free products / difference in rates. All depends on your borrowing amount really.

Look at the whole picture and not just the rate

_Andy_

"One person I have spoken to has said I will need to make it my main account, with all direct debits coming out of it. Someone else has said it needs to have regular amounts paid in."

who? HSBC staff?

KTF

What mortgage are you taking out that requires you to have an account with them.

I have an HSBC mortgage and there was no requirement for me to have an account with them.

BristolExile

Dylan

What you are saying sounds very familiar! I had an hsbc current account and was told when I changed my mortgage to add my wife that we would increase our chances of getting a mortgage (or something along those lines) by an HSBC staff member if we made it a joint account and had both our wages going into that account instead of just mine.

Whether that is the truth or whether it is just an HSBC ploy to get more customers / sell more services I don't know! Similarly I think I was advised to upgrade to an advance account to help our chances.

CKhalvashi

BristolExile wrote: »

I was advised to upgrade to an advance account to help our chances.

It will get you a lower booking fee (£80 with the account for the year), and I think lower fees on other things.

I know Premier worked out about £700 a year for us with the free bits, but I don't know about the advance package.

CK

dylanpressman

Thanks for all your replies.

It's a lifetime tracker mortgage. You can get one with a LTV of 60% at 2.59% but they also do one which is 2.39% with a LTV of 50% - but it's only available to HSBC current account holders.

The person I'm dealing with has said I would need to make it by main banking account, and therefore have all of my direct debits etc. coming out of it. I can see why they want this but can't find it written down anywhere - just says it's for current account holders only.

I think it's just a sales ploy, which is fine. But if they insist on it, I might just go for the 60% mortgage instead. I could do without another bank account!

KTF

Ah, its this one here:

https://mortgages.hsbc.co.uk/product/A001003664000000000000000000-lifetime-tracker-current-account-special-fee-free?source=results

I also have one of their lifetime fees free trackers but I got it before they put on the 'must be an HSBC customer' tie in.

I doubt you have to switch to their account so if you can get the lower rate just by opening one then its worth doing.

I would get them to show you in writing what the definition of HSBC Current account customer is.

dylanpressman

KTF wrote: »

I also have one of their lifetime fees free trackers but I got it before they put on the 'must be an HSBC customer' tie in.

I doubt you have to switch to their account so if you can get the lower rate just by opening one then its worth doing.

I would get them to show you in writing what the definition of HSBC Current account customer is.

That's the one! Yeah I think I'll do that, worth a go. It looks like a really good deal to me, no fee, 2.39% and no early repayment charges.

Thanks for all your help everyone.

KTF

Yes, its a great deal. No fees, can get out any time you want and unlimited overpayments on top.