Anyone taking up HSBC 1.79%

SpeedSouth

Anyone taking up this offer?

We are currently with them on 1.99%, with a small mortgage of £69k. I've run the figures over our remaining term (circa 16 years) and even paying the fee of £999 we will be £1250 better off over the 16 years.

Last time we switched to them from another vendor we only paid £99, so I'm wondering that maybe they will reduce the fee in the not too distant future if they don't get enough uptake on it.

There's also teh concern that they reduce it by another 0.2% again at some point.

Thrugelmir

adam81 wrote: »

I've run the figures over our remaining term (circa 16 years) and even paying the fee of £999 we will be £1250 better off over the 16 years.


There's also teh concern that they reduce it by another 0.2% again at some point.

Is the interest rate fixed for 16 years?

What's the concern? As you owe less on the mortgage balance then the fee makes switching products increasingly uneconomic.

SpeedSouth

No its a tracker so will track above BR @ 1.29 or 1.49 over the remaining course what ever that turns out to be. I'd have no concern on a 16 year fix @ either rate!

The concern is obviously if they drop rates again or remove fee I guess.

I realise the smaller the mortgage the less impact it has, I've run the figures in LocoBlade's excel sheet. It appears to be cheaper but it does suggest making sure monthly payments are identical which you don't appear to be able to do on a like for like comparison.

Having run the same figures on the MSE calculator the savings seem still there but less for some reason.

Spangled

Yeah, I saw that HSBC had reduced their lifetime tracker margin too. I think it's one of the best lifetime tracker rates on the market right now (I wonder if First Direct will follow suit?). I'll def be considering the HSBC deal when we come to remortgage later this year.

inkiboo

We have £250k and 19 years to go and decided the £750 was worth the switch from the 1.99% lifetime tracker.

scottishblondie

One thing to note is the fee goes down to £749 if you have an advance account with them, so if you don't have a current account with them already it's well worth looking in to. I've decided it's still to high a fee to switch from the base rate + 1.49% rate but I'm also keeping an eye in case the fee is reduced. Like you I paid only £99 to switch onto my current rate from their previous tracker at base + 1.99% so I'm holding out for a drop!