HSBC RateMatcher extended to ALL (non-HSBC) customers!

EdInvestor

Bismarck wrote: »

Quietly impressed by HSBC's astuteness...talk about playing good poker! .

Especially when you consider their First Direct move last week.:rotfl::cool:

Cash-Is-King

I think it sounds to good to be true.

The fees will be on average £750 (no mention of FREE LEGAL's) therefore add say £500 if you are moving. So you will be out £1250 over 24 months which is £52 p/m to cover the bills - this figure alone equates to approx 0.5% of a mortgage increase for a £115K mortgage over a 2 year period.

I reckon are shrewd and actually can clearly foresee trends for the next couple of years and that is way they aren't offering this for 5 years - so I reckon they are banking on people moving to a higher rate deal with them after the 24 month deal ceases as they will not want to spend a further £1K plus legals to move.

I personally think paying so much for 2 years in uncertain times is not a worthwhile gamble.

5 year fix fees totalling approx £1k for a 5.2ish% deal sounds better than paying £2K+ over 4 years and then having to pay more for year five's mortgage.

purplepatch

The woman from Charcol's on ITV news just mentioned a possible fee of up to £4999!! Ouch!!

:eek:

gt94sss2

Cash-Is-King wrote: »

I reckon are shrewd and actually can clearly foresee trends for the next couple of years and that is way they aren't offering this for 5 years

HSBC are offering this deal for 3 and 5 years as well - but only to current HSBC mortgage holders whose deals are expiring - not to everyone (and have been since the beginning of February)

I suspect that some of the bigger brokers will be worried by this move, as HSBC don't deal with brokers and if HSBC are/remain the 'best buy' they may be losing quite a lot in commission going forward..

Regards
Sunil

gt94sss2

wisbech_lad wrote: »

Doubt it. HSBC are mostly deposit financed (all those customers in Asia, who, you know, actually save money...) and so have the balance sheet fire power to do this.

Even in the UK, I think HSBCs deposit base is higher than their level of loans and mortgages, so no need to rely on Asian money (and potentially suffer exchange rate losses) - they can just use existing UK funds.

Regards
Sunil

setmefree2

purplepatch wrote: »

The woman from Charcol's on ITV news just mentioned a possible fee of up to £4999!! Ouch!!:eek:

BBC has £600 to £1000


Also Press release has following:-
From April 14th HSBC mortgage offers will include a 5 year fix at 5.39 per cent with a fee of £999, a 2 year discount mortgage at 5.43 per cent with a £999 fee and a remortgage lifetime tracker at 5.73 per cent with a £599 fee.

Don't know where £4999 comes from ?
Rate Matcher examples:

luckyfool

setmefree2 wrote: »

BBC has £600 to £1000


Also Press release has following:-
From April 14th HSBC mortgage offers will include a 5 year fix at 5.39 per cent with a fee of £999, a 2 year discount mortgage at 5.43 per cent with a £999 fee and a remortgage lifetime tracker at 5.73 per cent with a £599 fee.

Don't know where £4999 comes from ?
Rate Matcher examples:

The examples you are quoting are their standard products. And the BBC examples were the examples for 2 hypothetical cases given on the press release.

I'm assuming the £4,999 would apply to a less typical case at the lower rates, e.g. for a £250k mortgage and a rate of 4.54% then you would pay the highest fees.

payless

If they keep fees in line say below £1000 then the deal will be very competitive.. lets hope they can cope with demand .
( their current tracker range is good already, and rumour that a ratematcher tracker to follow)

However if its just a matter of any loss on rate being made up on a big fee (added) then it won't be such a good idea...especially if people just add to loan - effectively increasing debt to offset the lower payments (... anyone remember stabiliesd mortgages) .. not saying it will be the case though - if they can truely fund and manage high level of business at low rates then thats good ... assume those telephone based WoM advisers will be directing everyone there! :-)

Conrad

I have a gut feel we will be seeing a lot more fixed rates starting with a 4 in the comming year.

Overall the HSBC offer looks good to me and the fees nothing n like the £5,6,7000 of so many lenders.

Dick_here

Conrad wrote: »

I have a gut feel we will be seeing a lot more fixed rates starting with a 4 in the comming year.

So is it a good time to go onto SVR at the end of a fix and wait for cheaper deals than are currently on offer ?