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Remortgage with current lender?
FashionHeart
Posts: 150 Forumite
Hello
In need of some advice, please (another rise in interest rate panic thread).
I'm currently with HSBC on a 2.99% interest Fixed Rate which ends in August 2023.
My question is - would it be worth staying with HSBC or going with a new lender entirely next year?
Situation: the mortgage is £115k with 42 LTV and the current home value is 200k.
In need of some advice, please (another rise in interest rate panic thread).
I'm currently with HSBC on a 2.99% interest Fixed Rate which ends in August 2023.
My question is - would it be worth staying with HSBC or going with a new lender entirely next year?
Situation: the mortgage is £115k with 42 LTV and the current home value is 200k.
0
Comments
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Personally I’d say it’s too early to be considering what to do yet
No one knows what the interest rates will be and what deals you can get
look nearer the time when you can without any ERC to pay07/12/24: Debt total £9,000
07/12/24: Savings: £20,0000 -
Probably see whats happening around Feb/March time. Then you can secure a 6 month offer from another lender whilst you wait for the hsbc existing customer deals to open up0
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@fashionheart Sorry to start off being pedantic but I want to differentiate between a remortgage (moving to a new lender) and a product-switch/PT (staying with the current lender, HSBC in this case)
One huge advantage of being with HSBC is it's pro-rated ERC of 1% / year remaining on the fix. So, in the final year, if you did a remortgage or a PT that completed on 01 July 2023 (2 months before the end of your fix), the ERC payable would only be two-twelfths of 1%. So about £190 for a loan size of 115k. Please do check the ERC section of your original mortgage offer to confirm this.
The second advantage is that, unlike a lot of other mainstream lenders, even if an ERC is involved, HSBC will allow you to delay a PT for up to 4 months (120 days to be precise).
I don't have an opinion on what exactly you should do and what will work out best on hindsight will depend on future interest rates but hopefully the above will help you make a more informed decision while taking advantage of the flexibility that HSBC products offer when it comes to the end of a fix.FashionHeart said:Hello
In need of some advice, please (another rise in interest rate panic thread).
I'm currently with HSBC on a 2.99% interest Fixed Rate which ends in August 2023.
My question is - would it be worth staying with HSBC or going with a new lender entirely next year?
Situation: the mortgage is £115k with 42 LTV and the current home value is 200k.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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