Remortgage Dilemma [HSBC Fixed Rate]

HUNTER-GATHERER_2

I have a fixed rate [4.9%] with HSBC untill the end of May08.

1 - Should i take HSBC's offer to keep my fixed rate?

This would mean paying a month's 'early end' on my current mortgage and also paying a fee of £499 for my next fixed rate of 4.9%.

2 - How long should i fix for ? 2 , 5 , 10 ?

3 - If i sell my house in say 2 yrs , and i have a 5yr fixed - will i have to end this early and incurr charges ?

Any info is good info !! cheers [i am a remortgage virgin]:D

brad171080

hi,

if you could get the fixed rate of 4.9% i'd personally take that it's quite good, depends on your circumstances as to how long you should fix the rate for. If you remortgage every few years it costs alot in set up fees so maybe go for the 5yrs??

In most cases the lender will make you pay an early repayment penalty if you sell the house before the mortgage deal expires, doesn't matter if you are 2 months into your mortgage or you have only 2 days left, this figure is normally 2-3% so if your house sells for 100k you could end up paying 2-3k back. You should bear this in mind when you fix your rate as it's money down the drain!!

Good Luck

amsutt98

Sounds like a good rate to me i've been looking around and would be happy to get a rate that low.
Regarding how long you should sign up for, Im no expert but i think that HSBC let you move the mortgage to a new property without any charges, so you could ask them about this.

KevMortgageAdvisor

Hi Hunter

4.9 fixed is a very good rate, therefore I would consider fixing it for around 5 years & as amsutt says, its likely HSBC will allow you to port your mortgage to a new property which would help you avoid any early repayment charges. (It will be detailed in yoru mortgage offer whether the product is portable)

If you decided to move to a mortgage expensive property, you will be able to port your current mortgage over and if additional funds are needed they will allow you to "top up" the rest which will be on another product

help the above makes sence!!

HUNTER-GATHERER_2

Cheers for the reply -
it will probably be worth fixing again on a 4.9% even if it does cost me £700-£1000 right????
Ill go and see someone to check whether or not the mortgage is portable - this should help me decide on the term.

_Andy_

HSBC mortgages are portable. 4.9 is a great rate for such low fees on todays market

HUNTER-GATHERER_2

I phoned the bank today with a smile on my face , only to be dissapointed!!
They told me i cant get the 'RateMatcher' deal if i end my current fixed rate early!!
Is there any way around this ? my fixed finishes end of may , and the hsbc offer finishes end of april - aaaarrrrgggg

_Andy_

No but it's possible they'll extend it I guess.

gt94sss2

Good news:

HSBC has announced that its RateMatcher guarantee, which matches the interest rate its fixed rate mortgage customers currently pay when they roll off their existing deal, is being extended to 30 June 2008. The guarantee, originally only on offer until 30 April, has been very popular with customers’ coming to the end of their fixed rate period choosing to re-fixing at the same rate.

from here

Regards
Sunil