HSBC Switching Rate vs Borrowing More Rate - Why the difference?

IAMIAM

Can you not have the switching rate for the additional borrowing? Confused.

Is the existing customer additional borrowing rate for customers who are in a current tie in only, so if you are switching rate at the same time as borrowing more, you can have the switching rate on the two products? Seems confusing. Can you not have the borrowing more rate for the switching part? ie the other way round

housebuyer143

I believe the switching rates are for customers who are moving to a new product with no additional borrowing. This is because they don't need to do affordability checks etc. 

If you want additional borrowing they need to do all the checks again so you can't just switch to a new product and I imagine that rules out the rates for switches. 

FashionHeart

IAMIAM said:

Can you not have the switching rate for the additional borrowing? Confused.

Is the existing customer additional borrowing rate for customers who are in a current tie in only, so if you are switching rate at the same time as borrowing more, you can have the switching rate on the two products? Seems confusing. Can you not have the borrowing more rate for the switching part? ie the other way round

From my understanding of most lenders - if you want additional borrowing, you would need to do the affordability checks again which will impact the rate you will receive.

gih

Can you use a no-fee tracker with no ERC to take the additional borrowing, and then after it starts switch from it to a product with the better switcher rate?