Drop rate by 0.30% And Add fee Query

20vt-rs

Hi all,


Working on reducing my mortgage down and am overpaying monthly approx. £150.


Speaking to HSBC they have a product available that is new on the basis by LTV is now below 60%.


My current deal is BOE + 1.79% and I switched to that a year or so ago with no fee.


They have offered a BOE + 1.49% with a £299 fee, that I can add to the mortgage.


The difference of adding it to the mortgage is £1.93 a month and over the term I'd pay back an additional £48 on top of the £299.


Moving onto this fee and adding the £299 to the mortgage will make my monthly payment £13.42 a month cheaper (or £15.35 PM if I pay the £299 up front).


I'm in two minds whether to move to this, I'd go for it if there was no fee, but am I sill not sure, worth going anyway based on the fact it will reduce my monthly payment?


Would appreciate options please!
Thanks...

amnblog

Sounds like it will take you 20 months to find out if you were right.

Rollinghills

What is the alternative? Looking for a better rate elsewhere at some point? Then you can wait. But if you are thinking of staying on the current rate for the years to come then the new rate is better even with the fees.

20vt-rs

Ok thanks for the info, the more I think about it the more I think it might be worth holding off and seeing what other deals come around. Ideally I'm after a fee free deal, been stung in the past paying a fee only to re-mortgage again to a better deal shortly after!


I'm not planning on coming off tracker or moving, but always hunting the best deal I can get to get rid of the mortgage.