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

Dick_here

john_s wrote: »

It's a bit 'back of the envelope' but I did the following calculation earlier, based on the two examples mentioned in the press release.

£120,000 @ 4.94% = £5928 x 2 years = £11,856 + £999 (fee) = £12,855

£190,000 @ 5.19% = £9861 x 2 years = £19,722 + £599 (fee) = £20,321

12,855 / 120,000 = 0.1071 (4dps) (10.7% to 1dp)

20,321 / 190,000 = 0.1070 (4dps) (10.7% to 1dp)

So maybe 10.7% of the total amount lent is to be repaid so they simply match the interest rate and the rest is the fee?

Using that formula then £250,000 @ 10.7% = £26,750

If the lowest interest rate was applied then this would raise

£250,000 @ 4.54% = £11,350 x 2 years = £22,700

So 26,750 - 22,700 = £4050

So a (max) fee of £4050? Or thereabouts. Probably wrong but I couldn't help noticing those two percentages from their examples were exactly the same.

It was an A4 envelope, right ?

payless

Also no WOM broker will recommend the deal as the deal is not available to them, and so they do not have to recommend it, or even discuss it.

That might be right for the "pile them high brokers" but they will have find people asking about the deal. In fairness I have recommended other HSBC deals to 4 clients in the last week,(I say recommended - well as far as I can - in telling them about the deals - as I can't obtain the KFI for them/ confirm all criteria) . OK I know it won't earn me commission and in those cases I did not even charge a fee, but I would rather keep the clients long term than risk them losing trust in me ( even though I always make it clear that WoM does not really mean that)

luckyfool

owitemisermusa wrote: »

I'd always assumed that this was a rather generous monthly overpayment limit. Are there any lenders allowing more than 20% pcm for their fixed rate products?

OMM

Typically, a more common overpayment facility is where lenders allow overpayment of 10% of the outstanding capital in any one year. e.g. On a £200,000 mortgage if your payment was £1,000 per month then HSBC would allow you to overpay (200*12) £2,400, whereas a lender allowing 10% capital overpayments (such as Halifax) would allow a maximum of £20,000 to be overpaid in the first year.

owitemisermusa

luckyfool wrote: »

Typically, a more common overpayment facility is where lenders allow overpayment of 10% of the outstanding capital in any one year. e.g. On a £200,000 mortgage if your payment was £1,000 per month then HSBC would allow you to overpay (200*12) £2,400, whereas a lender allowing 10% capital overpayments (such as Halifax) would allow a maximum of £20,000 to be overpaid in the first year.

Ah!

HSBC - 20% of monthly payment

Other lender - 10% of outstanding capital

I see! So the HSBC overpayment not that great after all!

Thanks Lucky.

poppy10_2

cells wrote: »

if it looks too good to be true......
wait for full terms and conditions
and for those who are saying "cherry pick" blah blah blah
they could "cherry pick"at 5% fixed quite easily, even at 5.25% an 5.5%
there is no reason for them to offer 4.6%

wait for T&C tbh

Don't fall for HSBC's mortgage matching

The bank does not intend to make a loss on the scheme, which runs for five weeks from tomorrow. “HSBC will make money on every mortgage sold,” it said.

Furthermore, HSBC has fixed the minimum rate it will match at 4.54%.

Homeowners must also have 80% equity in their homes to be eligible – excluding yet more of the 1.4m people coming to the end of fixed-rate deals this year.

A homeowner with a £120,000 mortgage would pay an arrangement fee of £1,999 for HSBC’s 4.54% rate. HSBC reserves the right to increase the maximum upfront fee for a loan of £250,000 to £4,999.

Melanie Bien of broker Savills Private Finance, said: “This is a very clever marketing ploy, but it could end up doing more harm than good.”

James_H

The new HSBC deals are on their website:
http://www.hsbc.co.uk/1/2/personal/mortgages

Very competitive deals on there, e.g. 4.99% Rate Matcher with £899 fee. As mentioned above, only for two years and with tight rules as to who can get it.

Interesting one for everyone else is confirmation of the 5.39% five year [strike]tracker [/strike] fixed with £999 fee.

michaels

Based on the website example the deal if you include the fee works out equivalent to a 2yr fix at 5.35 with no fees. Not sure how competitive this is?

michaels

James_H wrote: »

The new HSBC deals are on their website:
http://www.hsbc.co.uk/1/2/personal/mortgages

Very competitive deals on there, e.g. 4.99% Rate Matcher with £899 fee. As mentioned above, only for two years and with tight rules as to who can get it.

Interesting one for everyone else is confirmation of the 5.39% five year tracker with £999 fee.

Ouch - my tracker with hsbc arranged only 6 weeks ago is payable rate of 50 basis points under base and including all fees and charges it is still 2bps under base.

Dan_Collins_2

As all mortgage deals, it will suit some and not others. £150k at 5.2% fix for two years with a £599 is very good!

maveli

michaels wrote: »

Ouch - my tracker with hsbc arranged only 6 weeks ago is payable rate of 50 basis points under base and including all fees and charges it is still 2bps under base.

Michaels,
Is this the life tracker ? I didn't see any tracker from HSBC which offers below BoE rate in the past 2 months. Did I miss ?

Thanks
Maveli