the joys of a FTB mortgage - HSBC changes it's deal! Damn them!

emujuice

Hi all,

Spent 2 months in limbo waiting for norwich and peterborough to agree to give us a mortgage - which they eventually decided not to do.
In order to try and get the house we originally wanted we dashed around and applied for HSBC last tuesday for a 5.39% 5 year fix, £999 fee. on weds they pulled the rate.
rang the mortgage manager and he said it would be fine. It's taken the underwriters a week to come back to us to say we can have a mortgage. but today they've phoned to say they wont' do that rate!! Grrrr.

The options are now:

5 year fix at 5.73% - £499 fee (but he'll try and get rid of the fee because of messing us around)
- therefore costing £1040 extra over 5 years.

or tracker at +0.48% £599 fee (no offer to get rid of that)

On the £131,000 mortgage (on £150,000 house) the increase on the fix is from £588 to £626 a month (interest only for first 3 years)

Any advice or alternative mortgages out there?

We're keen to move quickly as the house is empty and I'd like to be in soon (and out of my parent's place!)

Thanks

TimeToSetUpHome

That's interesting. I'm applying for my first mortgage with HSBC and the standard tracker that they offer is +0.99% so you have done really well there... I wonder why that is? We have no blemishes on our credit record!!!

Well done anyway

Ma77hew

I would probably take the fixed offer providing the fee came off.

I can see the base rate coming down over the next 6 months but rising over the course of the next 5 years. Personnally wouldn't be worth the gamble of it staying low.

I think the rate is pretty good, given the current climate. Nationwides 5 year fix for FTB is 6.15%, Halifax 6.09%.

emujuice

Hi guys,
yep, we went with the fix - seems the safest and still a good deal. All seems to be progressing now, the survey should be this week. Fingers crossed.
Good luck timeto

Gloster_Advise

Emujuice,

If you wanted to change lenders to get a better rate you "may" need to do a further valuation or get it re-typed. Also a new application etc. Sounds as though speed is of the essence here.

tough luck on them pulling the rate. You and hunders of others I pseka to must take it on the chin.

From an advisers point of view, take the HSBC route as it may be anopther 3 weeks at least potentially befopre the mortgage is offered.

Regards
Si