Fee free HSBC mortgage

shop-to-drop

Engeroosi wrote: »

Yes I do have internet banking, will check this out when I get home. Every little saved is better in my pocket. Only 0,2% but still

Yes do check it out if its an HSBC account. I switched products this way and it was so simple. A list of products you can switch to is given to you and everything can be done online. Will only be a little more to it I guess if you need to verify your LTV.

Engeroosi

also looking to see if is worth paying 599 fee upfront for another 0,3% less.

shop-to-drop

Engeroosi wrote: »

also looking to see if is worth paying 599 fee upfront for another 0,3% less.

I doubt it unless the mortgage balance is pretty high.

Engeroosi

98000, on the calculator it suggests it would be worth it!

shop-to-drop

But remember when deciding you are planning to make lots of overpayments.

jimmy125

Wow this is familiar!

I actually did the same thing recently in when coming off a fix I took a fee free mortgage then a couple of months later I noticed HSBC offering 0.2% lower and switched again. I did both on internet banking and both times the mortgages were effective by the following morning.

I also shortened the term of my mortgage around a year ago from 23 to 14 years. This involved HSBC sending new offer documents to be signed and returned. I was warned however, that if at any time I wanted to extend the term then a new mortgage application would be required. This process was done through the messages service on internet banking.

Twiggy_34

This is an interesting post, thank you. We took out a fee free fixed rate mortgage from HSBC last year, we're only a year in but rates have dropped further still from what they were then. We also did a lot of work on the property which increased it's market value by 40k (50%) so I guess that means we would have a much better LTV?

I might have to do some research to see if we can also switch mortgages, or if the fixed interest period means we're tied in for the next 4 years... I'm sure we discussed something along these lines at the time, but more to do with paying the mortgage off early than anything and can't remember what was said now. Combine the possibilities with the value increase and the fact we're already overpaying, it could have some positive results...

jimmy125

Perhaps I should have mentioned Twiggy that the mortgages that have been switched are trackers with no tie in. Someone may correct me but I believe that HSBC fixed mortgages have Early Repayment Charges on a sliding scale the closer you get to the end of the term. I think that the charge is 1% of the balance for each year you have left (pro-rata for each day).

Twiggy_34

Thanks for your comment Jimmy, I did think this might be the case. Not to worry though, I know we're still on a pretty good rate compared to if we'd got a mortgage say a year or 2 earlier, so I shan't complain. Either way, when we get to re-mortgage after the fixed period I hadn't thought to consider the potential LTV impact at that time from the numerous home improvements we made so we should be able to get a good deal then depending on rates at that time.

Engeroosi

I am unable to check my account online, need the wee gizmo for the code and I dont have it with me. Worst part of working away.