3.99% variable rate

monkeydrum

i took out a hsbc mortgage in dec 2014 on a 3.99% variable rate (3.49% above Bank of England Base Rate, which was 0.50% at the time)

i'm just wondering if that's still a decent rate? i shopped around at the time but i'm a bit unsure about whether or not i should look for something else because my mortgage doesn't include any early repayment fees. i've had a look online, but in all honesty i don't really understand all the options from all the different lenders, so i was wondering if someone could just offer me some general advice?

thanks

GoldenShadow

Depends on your LTV as to what you qualify for. We are 90% LTV and on a 3.73% 5 year fix. A fixed term suits us for now so ERCs don't matter. Our rate isn't the most competitive and they've dropped a bit since we took ours out.

marksoton

If you're unsure of the options i'd have a word with a broker.

Depends on your circumstances but i wouldn't say that's a great rate.

boliston

what about fees? did you have to pay an initial fee to get 3.99% as this can make quite a difference to the total borrowing cost.

monkeydrum

no, there were no setup fees and there's no overpayment or early repayment fee

i'm basically just wanting to know roughly if it's worth investigating further or if my rate isn't too bad? (i've used a broker in the past and tbh, they weren't very good)

thanks

ripon12

I have just took out another deal with Hsbc 2.48% fixed for 5 years no fees and £250 cash back
There are some good deals around at the moment

RavingMad

If you're on a HSBC tracker mortgage, you can swap products online at any time. Just click on mortgage options once you've logged on.

If you're LTV has improved over the last year, you may find a better rate to jump to. I went from 3.84% to 2.39% this year, switching three times.

monkeydrum

hi ravingmad

i'm not sure if our mortgage is actually classed as a HSBC tracker or not. in the documentation it just says 3.99% variable rate (3.49% above Bank of England Base Rate, which was 0.50% at the time)

if i can swap online that would be fantastic. how easy was it to do? were there any fees involved in switching? or does it depend on what product you choose?

thanks

RavingMad

Pretty certain that HSBC only do fixed rates, lifetime trackers and discounted rates. Your mortgage documents will confirm this and any early exit fees applicable (though their trackers don't normally have exit fees)

It's fairly straight forward but if it's a joint mortgage, both people have to have an online account as both parties have to agree to the product swap. My wife popped into a branch to get this sorted as you had to be issued with one of their banking fobs at the time. I couldn't say what the process is now as you can log online without them.

Before you do that, though, you can see what products are available to you when you logon and go as far as choosing a new product.

https://www.hsbc.co.uk/1/2/mortgages/existing-homeowners

According to the above link, there is a fee free tracker for 3.48% at 90% LTV, so you'd be saving yourself 0.5% on your current rate

Just go slowly, though, going down this route means you've done so without any professional advice and so you can't lay blame on their doorstep

boliston

RavingMad wrote: »

.....

Just go slowly, though, going down this route means you've done so without any professional advice and so you can't lay blame on their doorstep

I have noticed that many "professionals" seem to be keenest on fixed rate deals often heavily loaded with setup fees and early exit fees.

Mortgage_Mark_2

boliston wrote: »

I have noticed that many "professionals" seem to be keenest on fixed rate deals often heavily loaded with setup fees and early exit fees.

Bit of a sweeping statement that.

Often the fixed rate with setup/redemption fees will work out as the best if the client wants the lowest cost over those first few years. Forgetting the fact that many like to know exactly what they will be spending in order to budget, too.

But then, making that recommendation is why we are "professionals".