HSBC Re-mortgage Life Time Tracker - Special

Guy_Montag

I'm looking at options for my girlfriend's mortgage. She's on a HBOS fix that's coming to an end in June. She went to see her broker a few weeks ago (thinking her fix was up sooner) he told her to come back in three months when hopefully things will have settled down (pretty bad advice in my opinion, not that she could have done much at that point).

Anyway I'm nagging her to get a reservation on something asap.

In trying to be useful rather than just a nag, I'm trying to find good products for her. The HSBC Re-mortgage Life Time Tracker - Special looks pretty damn hot - base rate + 0.38%. Is that open to anyone, or just to current HSBC customers? Any hidden nasties I should be aware of?

Obviously if the BoE starts paying attention to its mandate in a potentially high inflation environment it might not be such a good idea, but it seems you can get out at any time for £30 if a nice cheap fix comes along.

Ta in advance for the excellent advice that will follow.

maveli

I got this last month when it was 0.23 above BoE. It is open to everyone (I think other than HSBC customers). For me it only took couple of weeks to complete the whole process and it was pretty smooth. I don't think there is an exit fee of £30.00. They took £30.00 for the bank transfer and was taken along with the first payment.

The only disadvantage I found with this deal is that they will not add the booking fee of £599.00 to the loan amount. You have to pay this upfront.

Kez100

What is her LTV?

maveli

This offer is for 90% and less LTV

Guy_Montag

Pretty low: less than 70%

based on what she spent in 2003 & next door cost in 2006 (assuming no HPI since 2006 - I'm conservative)

Jag1978

I took this offer after my fixed rate came to an end with Halifax. It's a brilliant Tracker deal with the most flexibility I've seen in a mortgage deal. Snap it up as I read on another post that HSBC might be pulling it in a few days!! I sorted my application over the phone. Filled in the paper work last week got a call to say that everything is in order. Now waiting on final approval in a day or two. They did say that it could take up to 6 - 8 weeks to complete!! Mostly down to how quick your current lender is in providing the relevant info required.

Regards

Jag

Guy_Montag

Got a link Jag? Don't bother James_H has said enough

James_H

I applied for the BOE+38bps myself not so long ago. The phone application process was quite smooth, done in 21 minutes with less than a minute's wait on the phone to get through. With low enough LTV, they won't even need to come out to do a valuation.

As a non-HSBC customer, I had to go to a branch for them to verify / photocopy / fax my ID, which they didn't seem to have much of a clue about what to do, but I was given a card for a financial planning manager and not bombarded with any sales spiel.

On the phone, they did say that high volumes of applications would mean applications could take six to eight weeks to process.

The brokers advice to wait could be mixed. The financial markets in the UK suggest the worst expectations of the credit crunch have passed, with the costs of hedging default falling throughout March and credit spreads having peaked. Even if you are able to get a better deal by applying in June, it would have to offset your other half having to pay SVR for a month or two until completion. I would persoanlly act now as I can't see mortgage rates getting significantly better than now in a few months.

If the HSBC deal is the one wanted, don't forget it is being replaced by the more expensive BOE+48bps on Monday.

payless

I have suggested this to a number of people recently- its now out of synch with the similiar products from other lenders ( ie others were similiar priced- but most now a lot more) and as indicated about I would not be surprised if they pull it soon

Obviously not suitable for everyone - especially those looking at security , but is posibly also a stop gap product ( so long as fees aren't a big % of ones loan size) for those wanting ( but not desparate for) a fix but see rates likely to soften

jicms

Hi

Does anyone know if this lifetime special tracker mortgage is available on a part and part or split Repayment/Interest Only basis?

I phoned HSBC this morning but owing to the huge demand I'm having to wait for a call-back. They didn't know whether this loan can be split. I got all excited about the First Direct lifetime tracker at 5.59% only to discover it had to be repaid on a full repayment basis.

I've been accepted for a Co-Op 5.49% two year tracker which I'm keeping on hold pending comparison with the HSBC deal. I don't want to lose it because of dithering!

maveli

jicms wrote: »

Hi

Does anyone know if this lifetime special tracker mortgage is available on a part and part or split Repayment/Interest Only basis?

I phoned HSBC this morning but owing to the huge demand I'm having to wait for a call-back. They didn't know whether this loan can be split. I got all excited about the First Direct lifetime tracker at 5.59% only to discover it had to be repaid on a full repayment basis.

I've been accepted for a Co-Op 5.49% two year tracker which I'm keeping on hold pending comparison with the HSBC deal. I don't want to lose it because of dithering!

This is a flexible tracker mortgage. So where is the question of split come from. You can take it as interest only and pay an extra amount regularly which will make it a "split".

Northern bank also runs a similar product if you have good LTV and you can avoid the fee if you go for their choice plus account.