HSBC - switching mortgage rate

nrg2020

Hi everyone, just wondered if anyone had switched to a new rate with HSBC recently and how straightforward it is? Now they have extended the time period from 90 to 120 days, I am able to move to a new rate (current rate expires end of December). I had been considering paying an ERC of about £400 to secure a new deal before rates go up again, but hopefully won't need to do this now. 

Is the switching process quite straightforward? I was going to remortgage but the rates are more or less the same as what HSBC can offer as an existing customer so not sure it is worth the stress of finding a new lender. Is it just a case of simply switching online or should I go through my original broker to do it? Thanks

Yawn

I renewed with them last summer, about two months before my deal expired, and it was really easy. The main thing is to put the correct start date on the paperwork so you don't get charged. Has a quick chat about that on the HSBC app and they were really helpful too.

If there is little in it, I would definitely go for it because it's way less time consuming,

K_S

nrg2020 said:

Hi everyone, just wondered if anyone had switched to a new rate with HSBC recently and how straightforward it is? Now they have extended the time period from 90 to 120 days, I am able to move to a new rate (current rate expires end of December). I had been considering paying an ERC of about £400 to secure a new deal before rates go up again, but hopefully won't need to do this now. 

Is the switching process quite straightforward? I was going to remortgage but the rates are more or less the same as what HSBC can offer as an existing customer so not sure it is worth the stress of finding a new lender. Is it just a case of simply switching online or should I go through my original broker to do it? Thanks

@nrg2020 If the rates are similar then the HSBC product transfer option is quite straightforward as long as as you aren't looking to borrow more or change the term.

It's too late now but the significant savings would have been if you/your broker had looked at remortgage (changing lenders) options in late June (as most mainstream mortgage offers are valid for 6 months, with some allowing an extension on that as well, and offer free valuations, free legal/cashback so no sunk costs until completion), getting an offer in hand and then comparing it to your HSBC PT options in September. That's the approach I've used this year for most of my clients with fixes coming to an end. And in the vast majority of cases, given the rising rates this year, it's been the remortgage offer that's been lower cost.

nrg2020

Thanks for the replies. This is the first experience I’ve had of remortgaging so definitely learned some lessons, I only looked into it recently but realise I could have made a reasonable saving (about £80 a month) if I’d sorted it out sooner. You live and learn. Think I’ll just stick with HSBC, on a 5 year fix. 

nrg2020

Just another piece of advice needed please, I transferred to a new rate with HSBC at the weekend which takes effect from 01 January. I received a letter today which states the following: 

Thank you for your recent request to change your mortgage rate. Your new rate and terms (as set out in your Personalised Illustration and offer) will apply from 1 January 2023.

Please note, as your new rate is not going to take effect immediately, by the time it does, the information shown in this letter may have changed. We'll write to you when the new rate takes effect, confirming the switch and the new information.

Does this mean that the fixed rate I have switched to can be changed if interest rates go up? Or is the bold text referring to the the future STV?

K_S

nrg2020 said:

Just another piece of advice needed please, I transferred to a new rate with HSBC at the weekend which takes effect from 01 January. I received a letter today which states the following: 

Thank you for your recent request to change your mortgage rate. Your new rate and terms (as set out in your Personalised Illustration and offer) will apply from 1 January 2023.

Please note, as your new rate is not going to take effect immediately, by the time it does, the information shown in this letter may have changed. We'll write to you when the new rate takes effect, confirming the switch and the new information.

Does this mean that the fixed rate I have switched to can be changed if interest rates go up? Or is the bold text referring to the the future STV?

@nrg2020 If you've chosen a fixed rate, then that's the rate that will take effect on 1st Jan 2023 irrespective of what happens between then and now with BoE rates or wider market rates.

lazypanda

nrg2020 said:

Thanks for the replies. This is the first experience I’ve had of remortgaging so definitely learned some lessons, I only looked into it recently but realise I could have made a reasonable saving (about £80 a month) if I’d sorted it out sooner. You live and learn. Think I’ll just stick with HSBC, on a 5 year fix. 

Out of curiosity, what rate did you fix with HSBC? Thanks 

rpsherid

I was able to check a switch online a few weeks back, now I go to HSBC sign in and continue application and even start a new one and it says I have to call to process instead, any reason why?