HSBC Lifetime tracker - anybody know anything better?

adam_ironside

I am currently in the process of re-mortgaging. I am with Abbey and can't find a better deal than the HSBC Lifetime tracker - it tracks at 0.49% above base rate for the full term. There is only a £599 fee (which unfortunately has to be paid up front and cannot be added to the loan). Other than this i cannot see any problems - interest rates look like they are on the way down and if they go up you can move without paying an exit fee on this product.

The question is - does anyone know of anything better?? all other deals (fixes or otherwise) seem to have high arrangement fees which cancel out the possibly lower interest rate, and given that most other deals last only a couple of years or so you will pay significant amounts in fees through the constant re-mortgagin that will be inevitable over the term of the loan.

any advice would be much appreciated!

salty_seadog

Thats not a bad way to go at the moment i.m.o. I have remortgaged about 6 months ago with nationwides lifetime tracker which tracks at 0.3% above base rate. In the current conditions with base rates going down and most lenders actually increasing their rates at the same time i would definitely get on a tracker rate .
Also the fee seems very reasonable in the current state of affairs and it could be good to act quickly to get the best rate.


Just checked Nationwide and their lifetime tracker is not as generous anymore carrying a rate of 6.18% with a similar fee. I would jump at the tracker you have mentioned.

FourNettFourForTwo

Hi Adam
How ironic! I have just been on the phone to HSBC and having given all my details they are sending me the paperwork to sign. They are advertising 2 tracker mortgages...
1) Base rate + 0.49% plus £999 booking fee
2) Base Rate + 0.48 for term plus £599 booking fee

I've gone for the second option. As I'm moving to them from the Nationwide they will pay the other costs (valuation etc..).
This gives me a 2 week window to go back to the Nationwide and see if they can match or better it.
I would also be interested if any one comes across a better deal at the moment.

owitemisermusa

FourNettFourForTwo wrote: »

Hi Adam
How ironic! I have just been on the phone to HSBC and having given all my details they are sending me the paperwork to sign. They are advertising 2 tracker mortgages...
1) Base rate + 0.49% plus £999 booking fee
2) Base Rate + 0.48 for term plus £599 booking fee

I've gone for the second option. As I'm moving to them from the Nationwide they will pay the other costs (valuation etc..).
This gives me a 2 week window to go back to the Nationwide and see if they can match or better it.
I would also be interested if any one comes across a better deal at the moment.

Why 2 diffferent rates/fees? Do they want people to call them to get the better deal?

maveli

FourNettFourForTwo wrote: »

1) Base rate + 0.49% plus £999 booking fee
2) Base Rate + 0.48 for term plus £599 booking fee

I think the.49 is for first time buyer or new purchases and .48 is for those who are remortgaging to hsbc

FourNettFourForTwo

Not sure why they have the 2 different rates. They are on their website under Remortgaging to HSBC then in the "Specials" tab. No clear explanations. I don't think they are for FTB.

FourNettFourForTwo

Just had a quick look at the HSBC website.
I think the +0.48 Tracker is for people remortgaging to HSBC and the +0.49 is for existing HSBC customers wanting to borrow more money. Nice to see they look after their customers! Loyalty obviously comes at a price - £999 in this case!

Peelerfart

We've just had a formal offer from HSBC on a tracker along the lines of Adam's and I have to say they have been very smooth.

If you do decide to proceed with them our experience so far has been very good,very slick with the minimum of fuss. Far better than our old lot the Cheshire BS who have been very poor.

MartynwithaY

Egg also do a life time tracker which is similar to HSBCs offer. It has a higher rate of BOE + 0.75%, but is fee free.

For me it would take just over 4 years for the lower monthly payments of HSBC to make up for the fee. So I might give the Egg deal some consideration.

adam_ironside

Thanks for the replies people. I just checked the egg one but for me it would only take two years to make back the HSBC arrangement fee, and given that a lifetime tracker is a significant amount longer than that i think i would rather swallow hard and pay the fee rather than go for the short term benefit.

So from what i can gather HSBC is still best and now i am waiting for a call back from them... please let me know though if anyone comes across anything else decent.

Rikki

Woolwich have 0.74% above base rate lifetime tracker. Fee free with no early repayment charges. CLICK HERE

I had my lifetime tracker with them for the past five years no problems.