Mortgage 1.49%+BOE =1.99%, Lifetime tracker max 60% LTV

adindas

[FONT=&quot]If you could have LTV maximum 60% (e.g Re-mortgage or large sum of deposit) you could get a very good deal with HSBC.[/FONT]
[FONT=&quot]For HSBC current account holder: [/FONT]
[FONT=&quot]Lifetime Tracker Current Account Special HSBC Current Account Customers Only 1.49+BOE base rate = 1.99 (Currently), Equivalent to 2%APR[/FONT]
[FONT=&quot]https://mortgages.hsbc.co.uk/product/A001003977000000000000000000-lifetime-tracker-current-account-special[/FONT]
[FONT=&quot]This offer also applicable to non HSBC customer which slight ly higher e.g. 2.1% APR[/FONT]
[FONT=&quot]https://mortgages.hsbc.co.uk/product/A001003976000000000000000000-lifetime-tracker-special.[/FONT]

[FONT=&quot]At the moment this is the best rate I have seen sofar coming new to the market.[/FONT]

botchjob

That is a good deal. Thanks!

scottishblondie

I just got off the phone with HSBC, I've switched over my existing mortgage with them and decreased my rate by 0.5%. Thanks for the tip!

HAMISH_MCTAVISH

adindas wrote: »

a very good deal with HSBC.

It boggles the mind that people think this is a "very good deal".

The banksters sure have been successful at brainwashing people over the last 6 years.

TheFactory

HAMISH_MCTAVISH wrote: »

It boggles the mind that people think this is a "very good deal".

The banksters sure have been successful at brainwashing people over the last 6 years.

I was thinking this, what happens when the BOE rate rises and people are getting products that track X% under the BOE rate? This won't look so great then will it?.

Thrugelmir

TheFactory wrote: »

I was thinking this, what happens when the BOE rate rises and people are getting products that track X% under the BOE rate? This won't look so great then will it?.

That era has passed.

HAMISH_MCTAVISH

TheFactory wrote: »

I was thinking this, what happens when the BOE rate rises and people are getting products that track X% under the BOE rate? This won't look so great then will it?.

Absolutely.

It takes a truly special kind of Vested Interest to claim that normality won't return to the market as competition heats up.

Bank profit margins have soared to record highs since the credit crunch, (never let a good crisis go to waste.... somebody has to pay for those record bonuses after all), but that is now changing.

And as much as the VI's want to make you think that these exorbitant margins are "the new normal", they're not.

They're a sign of a still dysfunctional, cartel-like market, that is badly in need of a good dose of traditional retail competition.

We're already seeing bank margins decreasing markedly even with the tiny amount of competition that funding for lending and help to buy has brought back to the market.

But there's still a very long way to go.

People need to remember that 1.5% or 2% above base rates on a lifetime tracker for a 25 year term are not good rates at all, they're atrocious.

Comparable with the SVR rates before the credit crunch, which were of course amongst the worst rates available.

bluedrum

HAMISH_MCTAVISH wrote: »

People need to remember that 1.5% or 2% above base rates on a lifetime tracker for a 25 year term are not good rates at all, they're atrocious.

Except that with a £99 booking fee and no early repayment charge there's not exactly a whole lot keeping you tied to this deal if others come along, is there?

marathonic

HAMISH_MCTAVISH wrote: »

It takes a truly special kind of Vested Interest to claim that normality won't return to the market as competition heats up.

I agree that current Base Rate + 1.99% trackers are not normality and should reduce - especially as the base rate starts to rise.

However, you're posts seem to be suggesting that the rates on offer 6-7 years ago were normality. They were far from normal. Normality is somewhere in between where we are now and where we were then.

ukflippy

I'm surprised there's not more noise about this - unless you're expecting the BoE base rate to go up in the next few months, providing you meet the criteria, there are very few drawbacks to this deal.

I have an old HSBC current account that I've not used in years, so I was concerned I might not be accepted, but once it was marked non-dormant, I was allowed to switch from my previous base+2.09% fee-free deal to this base+1.49% £99 deal. I save £42 per month, so as long as I don't plan to switch deals again in the next 3 months, I'm up.

I'm not quite sure what those arguing against this are getting at - is it that they genuinely think that within the next few months, we'll start seeing HSBC offering lower rates? That 1.99% is a high rate for a mortgage? That the base rate is going to suddenly skyrocket over the next few months?

For me, the combination of low fee, no initial period, no tie-in, no limits on overpayments, no early repayment fee make this particular deal pretty much a no-brainer. To get a better rate, I'd have to pay over £1000 in fees, and given how disloyal I am to my service providers, that's not something I'm happy doing.

pinkteapot

Agree with everything ukflippy said. We've had an HSBC lifetime tracker for a few years now.

Overpayments are unlimited from the start and can be done with simple transfers between accounts on internet banking (i.e. transfer random amounts whenever we like from our current account to the mortgage). No need to faff about with putting your monthly direct debit standard mortgage repayment up.

No tie-in, so you can move as soon as a better deal becomes available.

To Hamish - the amount above base may not be competitive by historical standards but it's extremely competitive today. Show us the mortgages that people can get for less than 1.99%.

My view is take it, overpay while the rates are so low and then move when they start going up. If you overpay enough you could get into a lower LTV band by the time you switch.

Obviously there's a risk in that a fix today will probably be cheaper than one you can get in a few years (if you want to just track for a few years). Down to personal preference, risk attitude and how tight your monthly budget is.

I'm gutted at the moment because we're moving and HSBC will no longer lend to us because my job is a fixed-term contract rather than permanent. HSBC are picky with no flexibility in their underwriting rules (i.e. no case by case review). We're having to take the next best tracker at Santander but again it has no tie-in so as soon as my role is permanent we can switch to HSBC to get the lower rate.