Have I been stitched up by HSBC?

MrGSaves

So, my 5 year fix finishes next month. I have 2 years left on a £30k mortgage.
I have had an HSBC mortgage for 12 years. I contact HSBC expecting to be able to switch to a 2 year fix deal to finish the mortgage. With better than 60% LtV I wanted to access one of their fee free fix rate deals.
However, I'm told their fix rate deals last a month longer than my mortgage term and I can't transfer to one. I can't apply to extend the mortgage by a month as that would be a new mortgage and they don't do mortgages for less than 5 years. If I want to access their tracker rates I have to pay a fee of £999 (not worth it on a small mortgage). Or I can just stay on the svr which is above the rate I'm paying at the moment.
Whatever happens I pay more than I'm paying now even though most rates are much lower.
Is there a way out of this?

davidmcn

MrGSaves wrote: »

I can't apply to extend the mortgage by a month as that would be a new mortgage and they don't do mortgages for less than 5 years.

Assuming you don't have enough cash to just redeem it now, get a mortgage for more than 5 years (either with them or someone else), and pay it off whenever the initial product period ends?

MrGSaves

davidmcn wrote: »

Assuming you don't have enough cash to just redeem it now, get a mortgage for more than 5 years (either with them or someone else), and pay it off whenever the initial product period ends?

Yes, it's an option that I'm going to look at. But I am pretty keen to pay it off - plus 5 years still costs more.

getmore4less

5y, 2y fix overpay.

Crunch the numbers the difference won't be much.

Play with some 0%BT and purchase credit cards and you could probably get cheaper than a 2y fix over 2 years even o. The SVR.

NorthernMonkey1

A 12 year mortgage for £30k will mean you've probably got about £6000 outstanding with 2 years to go.

The difference between a 2% rate and a 3.5% rate is about £4 a month. It's probably not worth the effort

getmore4less

if the OP has £30k over 2 years.

2y SVR
£30,000 4.19% £1305pm interest £1,327

2y 2y fix
£30,000 1.74% £1273pm interest £547

5year 2y fix(over 2y).
£30,000 1.74% £523pm interest £850

less with overpayments/the interest from saving the difference which should cover most of the £300 with regular saver it will earn more money.

foxy-stoat

I don't think your being stitched up at all.

MrGSaves

NorthernMonkey1 wrote: »

A 12 year mortgage for £30k will mean you've probably got about £6000 outstanding with 2 years to go.

The difference between a 2% rate and a 3.5% rate is about £4 a month. It's probably not worth the effort

I should have been clearer - £30k mortgage to pay in the next 2 years to finish paying off the mortgage.