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

Tancred

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.

Damn right!

Tancred

adindas wrote: »

[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]

I have a 2.35% term mortgage from the Coventry which is not a tracker and not linked to the base rate. I would save £20 a month by switching to the HSBC but it's not worth the hassle and I don't want one of their crappy current accounts. Once the base rate goes up - and it certainly will in 2015 if not next year - then I may consider a switch if there are better products.

I agree with Hamish. These products look great now, but in the overall scheme of things they are crap. If you have such a huge equity in the house you are practically a zero risk for the lender as they can reposses and sell the house under market prices and still recover their funds. These mortgages should be linked to 0.5% above base rates, not 1.5%. And HSBC is a bl**dy awful bank - terrible customer service and poor value financial products. The mortgages are just a 'hook' to draw you in so you are more likely to buy their other rubbish that you don't need. I'll stick to my building society thanks.

ukflippy

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.

I'd love to know what you'd recommend instead... As someone who was looking to remortgage, I'm not seeing any alternatives which would meet with your approval.

pinkteapot

Tancred wrote: »

These mortgages should be linked to 0.5% above base rates, not 1.5%.

And wine should be £1.50 a bottle and petrol should be 60p a litre in my view.

As others have said, for people who want a BOE tracker, show them a better rate than HSBC's and they can go for it. Among BOE trackers, HSBC appear to still be a best-buy, irrespective of your opinion of their price.

adindas

Tancred wrote: »

I agree with Hamish. These products look great now, but in the overall scheme of things they are crap.

Hmm could find a better alternative than this ? Any link ?

Tancred wrote: »

If you have such a huge equity in the house you are practically a zero risk for the lender as they can reposses and sell the house under market prices and still recover their funds. These mortgages should be linked to 0.5% above base rates, not 1.5%.
.

Well where does the random figure 0.5% come from ?? Why not 0.0001% + BOE. The banks are still making profit 0.0001% are not they ?
Unfortunately some people are just criticizing without providing any real alternative.
Also some people are not using their head but more up to what another person has said .... People who are using their head will know that if the unlikely event the BOE is rocketing high they will just switch it to fixed rate. What prevent them of doing that ???

Tancred wrote: »

And HSBC is a bl**dy awful bank - terrible customer service and poor value financial products.
.

Is it your personal experience ? Well Mine is different ....
How many bank accounts do you currently holding with difference banks to allow you to make personal comparison. I have more than ten bank accounts with difference high street banks and BS and I could tell that HSBC CS is very good although I will not rate them sitting on the top.

botchjob

Application accepted and paperwork is in the post. Will save me £65 a month on an already decent previous lifetime tracker rate of 1.99%+. No exit fees if and when a better rate crops up. A no brainer for a £99 fee (+ valuation) for those with an HSBC current a/c.

GarethB84

Morning all. I'm a long time reader but first time poster on this forum. I'd like to resurrect this thread as we are looking at a deal similar to this from Santander. (75% LTV BoE +2% lifetime). I'd appreciate people's opinions on my thought process and to let me know if I've missed something.

Until reading this thread I was unable to see the drawbacks with this type of deal, except for the obvious 'if interest rates rise so will your repayments'.

We are both 29 and take home approx. £60K per year between us. Currently no dependents and living in our first house, a two bed semi. We are in a position to overpay on our current 3.95% mortgage and did do by about £7.5k last year.

The positives seem to be:

• Low rate currently
• No ERC
• Unlimited Overpayments
• Cashback (small in the grand scheme of things)

The negatives:

• Repayments go up if BoE rate changes

The benefit of no ERC suits us as our long term plans aren't particularity well sorted (kids or no kids, emigrate etc). Unlimited overpayments is a massive thing as we'll likely be close to the usual 10%.

The change in BoE rate is obviously a risk. I'm currently thinking it is a low risk as without an ERC we can change deals with relative freedom. I appreciate that other deals will be more expensive by then, but is that any different to getting a 3 or 5 year fix now and needing a new deal when the expected rates rise has occurred?

I don't see us being on this rate for the duration of the mortgage, more to use it as cheap deal now and change when required - e.g sell house and emigrate, upsize etc. We've not remortgaged before so any advice would be appreciated.

Thanks
Gareth

Jonbvn

GarethB84 wrote: »

The change in BoE rate is obviously a risk.

The press over the NY had strong hints of a likely rate rise, maybe in Q2 2014.

avantra

So here we are Q1 2015 and no rates rise (yet), and did the mortgage rates went down? oh yes they did. Did the BOE rates wen up ? ho no they didn't!

Just switched our FD tracker from 2.4% above BOE to a remarkable 1.29 % above BOE rates for life, it's 1.8% oa, I think personally even with three modest rises of 0.5% I am still up. Saving £120/month is no means fit.

The fact that the insurance on mortgages (default swaps) gone down by 30% has something to do with these low rates me think.

This deal is for existing clients only (and no fees).:T