HSBC Re-mortgage Life Time Tracker - Special

jicms

I haven't been able to find out what the term "flexible" means. Maybe it means that you can pay off extra lump sums. We have had a split mortgage for some years meaning that part is paid on a repayment basis and part interest only. This is a big advantage as we have a second property meaning tax advantages for the interest only part.

jicms

maveli wrote: »

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.

This looks risky though as it's linked to their base rate not the BOE which the banks are not passing on to their customers.

Guy_Montag

jicms wrote: »

This looks risky though as it's linked to their base rate not the BOE which the banks are not passing on to their customers.

If we're still talking HSBC, I think not. From their website:

The mortgage interest rate is set at an agreed percentage above the Bank of England base rate. The interest rate payable will rise and fall in line with changes to the base rate.

maveli

I think jicms is talking about the northern bank one which is tracking on the banks base rate. I have been told by their staff that it strictly follows BoE and showed be the rate in past 2 years.

Peelerfart

I Agree with Jag1978.I think from a previous post I'm about two weeks behind him but everything has been smoth so far.
You can definately split IO and repayment 'cos we are.I believe it to be very flexible, but is more rigid than an offset.

This for us is a good thing otherwise we'd have a huge mortgage and a drive full of shiny things depreciating rapidly.

angelak_3

I saw this deal and went back to my current lender the C & G and asked if they could or would match it. They did, so the application went through in 2 weeks. I never thought banks would negotiate but I thought I would try my luck and they did.

owitemisermusa

angelak wrote: »

I saw this deal and went back to my current lender the C & G and asked if they could or would match it. They did, so the application went through in 2 weeks. I never thought banks would negotiate but I thought I would try my luck and they did.

Fantastic! Nothing ventured, nothing gained I say.

Didn't know banks were flexible - or are you just an exceptional customer?

jicms

Sorry for my earlier posting and subsequent disappearance from the forum! I thought I would get an email notification if I got a reply!

Anyway it is the lifetime BOE base rate tracker I've now applied for which is now 5.38% after the last base rate reduction. (According to the HSBC website it has now gone up to 5.48% for new applicants.)

It definitely seems the best deal at the moment. Problem is I'm getting very nervous about committing to this in the light of today's news about the new funding for lenders and the possibility of lower mortgage rates being offered. I can't seem to get a definite answer about when we'll be tied in/pay our £600 booking fee and valuation. Although we won't be charged any redemption penalties it's still a lot to lose if rates improve in the coming months. We're currently on a -0.1% below BOE base rate with BOS which looks amazing by today's offerings. We'll be paying £230 a month more with HSBC!

Any advice please?!

virgo149

jicms - We'd all love a crystal ball regarding interest rates , but as that's probably not going to happen, you've got to weigh up all the info you have and make an as informed choice for your circumstances as you can.

You've got another tracker on hold at +0.49 and are looking at the +0.38 from HSBC - co-incidentally we are going for the +0.48% at the moment. I've spent hours trawling every website I can find and this is still coming out on top FOR US in terms of flexibility with no tie ins and overpayments etc. With the current HSBC tracker, you pay your fee up front - £599 + £30 (can't remember what this if for now).

I've been on several trackers for a number of years now, and had some excellent savings - and a few 'losses' when the rates went up for a while. We love them, but not everyone is the same. We've a relatively small mortgage (£73K / 16 yrs) so I guess that would make a difference - not sure what yours is?

Not a great deal of help I know, but just wanted to let you know there's lots of us out there, asking exactly the same question. You've just got to do your homework and go with your gut instinct on what deal you would be happiest with under current circumstances.

payless

jicms wrote: »

We're currently on a -0.1% below BOE base rate with BOS which looks amazing by today's offerings. We'll be paying £230 a month more with HSBC!

Any advice please?!

Yes things have changed I've got clients coming off a 2 yr tracker at base - 0.76 !!!