Remortgage with current lender? 6 November 2022 at 7:15PM in Mortgages & endowments 3 replies 294 views

FashionHeart

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.

MFWannabe

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 pay 

JMA74

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 up

K_S

@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.