It is 1.29% + 0.5% base rate = 1.79%

Just to add, thanks to HUKD a couple of years ago I switched to a HSBC BoE+2.44% mortgage; was super easy, basically you fill out a 3 or 4 page form then they just keep updating you. No hassle, saved thousands, now mortgage free. :smile:

Basically if you can afford to whilst interest rates are so low, dump all spare money into paying off your 'bricks and mortar'. There can be exceptions (if you're getting very good returns elsewhere I.e. investments), but I've had too much wine to carry on typing. :smile:

...I understand your sentiment, however you're rubbish at funny acronyms :wink:

Again I can confirm it is 1.29% + BoE Base rate of 0.5%, making it 1.79%. Ofcource if BoE base rate changes your rate will get an affect. But since last 8 years it has been at 0.5% and imo it will remain stagnant for few more years. You have a flexibilty to switch to a better deal if it changes but finger crossed it won't change in near future.

Once you have found your Mortgage you will need a Conveyancer. Ideally use a company initially to get a guide price so that you can budget. http://www.homebuyerconveyancing.com or others by typing in conveyancing quotes into google

it is expired now - current rate is 1.99%
https://www.hsbc.co.uk/1/2/mortgages/mortgage-rates

I have had a look I see no life time trackers?

​Thank you for the advice. Shame i missed it, but will know better next time. ;-)

I will be starting the deal from 1st june!

I was speaking to my case officer yesterday and it was told the deal was fully subscribed and withdrawn on 21st May. See Coventry BS though as they have something similar.. 1.75% i think..

I am unable to see the advertised rate. When i try on the website it just shows '1.99%'. Has it gone already?

Thanks, just rushed to pay the booking fee!

looks like the deal has been withdrawn. current terms are 1.49% over base. I locked in abt 3 weeks ago... (smug face)

Great enjoy!

Had a call asking for some more documents 2 weeks ago, and was told they'd check them that afternoon and call me back.

No call back, had to chase a couple of times, but eventually got a call back today saying it had been approved.

No online updates for me, so I called it as I handed in my required documents to a branch on 15th April. Was advised they have had the docs for 3 business days, and it takes 5-7 business days for a decision which will be communicated online.

Already on the same product but paid £749 (advance customer) to switch from 2.39% to 1.79% on a £200k mortgage, should save around £100 per month, will take around eight months to pay off the fee but from then on its an extra £100 in my pocket each month (presuming bank rates don't change)

congratulation, what a high level of accomplishment.

although one cant really compare a "visiting professor" with a "real professor"

You're welcome! You are somewhat premature though... I've been offered a visiting professor position, but I haven't accepted yet.

I am not sure about your Saving accounts unless maths have been done. Need to calculate how much you will earn in say 24 months and if you do same Amount of overpayments how much will you save during the same period + over the term.

However for debts the priority needs to be given on debts with higher rates like credit cards or loans. Always try to do balance transfer for credit cards with 0%. However every person needs to do his planning based on individual circumstances!

thanks professor

So pile money into your mortgage when interest rates rise, not now. For now, it is better to pay high interest rate debts or invest in higher return savings. While you are currently paying off your low interest rate mortgage, I'm getting a much higher return on my Share ISA, which I can later cash in and pay off a much bigger chunk of my mortgage when mortgage interest rates increase.

Generally, lowest interest rate debts should always be paid off last, no matter what the loan duration, and more costly debts or better investments prioritised.

I agree with both. It is always better to pay off debts with large interests like credit cards or finance loans if interest rates are higher on these. Once relieved from these start paying off the largest debt....

Because credit card debts and loans are short term debts. All I'm saying is it's better off waiting to buy that £30k car on finance because once interest rates start to rise, suddenly a £200k mortgage will become a millstone, much better to pay off as much capital and interest now.

No, I am not a "HSBC Premier or Advance Customers". However I was told £749 will be the one-off fee. I guess I have been with HSBC long enough to get the "discount" :wink:

I disagree... why prioritise paying off a debt with a very low interest rate if there are other options, such as any other debts (loans or credit cards) or investing in a share ISA?

I will call them, just wanted to know what others got so I can get some negotiation advantage with me when I call. Their website says that existing Mortgage holders are like new customers - £999 to pay. Only Advanced/Premier customers get £749 to pay.

Give them a call and try to switch product with an upgrade of the account. You may get it for free. Try all options call or visiting a branch.

£749 ? Are you "HSBC Premier or Advance Customers" or "Existing HSBC Mortgage Holders" ? I also have tracking mortgage of 2.49% (but I am not a Premier or Advance Customer) and would like to switch the product.

Thanks, have applied - hopefully things will progress at their end before I start the valuation process. I don't want to commit to spending £400 if they're going to come up with a failed affordability test.

Hi, thanks for the explanation but you haven't factored in the 'admin charge' which is going to take 7 and a half years of interest (£749) to pay back on your assumed 1.79% invested savings or 10 years (£999) if you don't opt for the advance or premier current account, still think overpayment wins hands down plus surely getting rid of your mortgage early and actually having it as disposable income is the aim here, plus the rates will likely rise within 5 years IMHO.

same for me. would take several years to benefit from savings in my case

Just gave HSBC a quick ring. I was told that this would be considered a simple product switch rather than a re-mortgage because I am an existing HSBC mortgage customer. However the one-off fee of £749 still applies :confused:

we borrowed more from our current mortgage to buy another house......which we intended to let out until our house that we live in had sold.......we got around it by saying the other was would be rented out to generate income

Our application process was a nightmare....we applied in branch got agreement in priniciple but mortgage was declined based on affordability.....the branch said we had to wait 6 months before reapplying....the next day we applied over the phone ....got agreement in principle and then at a later date got a call from them to say mortgage approved.....

Oligarch restock. Every few years a new oligarchy somewhere in the world gets rich enough but unstable enough for the oligarchs relatives to want to buy yet more London property.

Already have a mortgage with HSBC, currently on a 2.39%+BOE. Called them up today and after 15mins conversation they agreed to switch over to this deal, so roughly saving £25/month! For once this site actually saved me some money :smiley:

As I mentioned, it is not about the repayment. It is about including this additional clause when you take mortgage with the bank. Your credit card and overdraft were approved without house as security. Why to add the house as additional security when you take the mortgage with them? I believe it is not right as the bank is taking the advantage when you take the mortgage with them.
Anyway, this is my view and it up to the individual to decide and clarify before they sign up.

Nope. If the lender has to repossess and sell your house to recover the outstanding debt, you should not be able to choose not to repay any other debt you owe them. It's not your money, it's theirs (admittedly borrowed from the money markets). You only borrowed it. If you defaulted on your mortgage payments, the chances are you would default on other debts too. They are right to recover any monies owed to them while they can. Any right minded person would want to repay what they owed.

That's why it is a death trap for people who can't do maths.

Exactly this.

crazzzzzy_b the point with the changes tax relief could force you in the higher rate tax as turnover will be taxed instead of profit. The government want their cut and BTL has been a sitting duck for a good few years now. People have been putting their money in other ventures as interest rates have been so low. And the solution will just not be 'put the rent up innit'. We are certainly not just beginning the 'upward trend' as you put it.

It won't be the corporations and the 1%'ers that take the hit. It will be the herd of over-leveraged amateur landlords we've had an explosion of in recent years. A lot of these people will not just get their fingers burnt...they will be incinerated. As I have commented before in this thread, every major financial decision should be calculated within all financial climates.

The boom and bust years are not over. Stocks/housing will not carry on increasing just because of the trend since 2008. Looking at the global economy we have the slowdown in China effecting mining and everything else, the dog-eat-dog over capacity of oil production and governments around the world using quantitative easing and getting in unsustainable debt. On our own shores we have Brexit and the BTL tax changes. Thats all before even that the banks have been now been told to toe the line by the BoE in regards the tightening of BTL mortgage lending.

All of this will effect the £100 billion of foreign investment that have bought London property - which is the heart of the housing market mega bubble which has filtered out to the whole of the country.

I brought a house (my first house) three years ago. I can switch next month. They have told me it'll go to 3.99%.

My mortgage is currently £107k with 27 years left. Does anyone know if I'll be able to get this deal? I have about £300-£500 spare each month so would like to use this to pay it off.

I probably need a financial advisor to be fair as I'm not clued up on all of this, but you chaps seem to know what you are talking about.

You are putting the house as the security for the loan/mortgage for the house. The other loans or credit card should not be linked. It has nothing to do with whether you repay or not. The bank already issued the credit/card or overdraft before you take the mortgage and why would they take the house as security now when you take the mortgage from them.
The house is put as security for future any debt as well. The house should be security for the loan/mortgage you are taking for the house, nothing else!

The 3% hike does not effect landlords who already own properties, might be slightly harder to sell but other land lords offer low anyway so you want first time buyers to buy them.

Not much else has changed if your a lower rate tax payer.

Lifetime

Lifetime tracker, flexible, portable, with an inbuilt overdraft where you can borrow extra at standard variable rate.

So lucky to get the deal we did.

Now I regret getting all those credit cards. Bank won't touch me with a mortgage and the credit card companies love me

Thing is, what worked for you then, might not work out now. New rules on second homes, no more tax breaks on BTL. so its great that you did what you did but that may not work out now. Also, where the properties are also has a big impact.

After the recent 3% hike and cut down of BTL mortgage interest relief, BTL are now literally death traps for people who can't do maths.

All landlords with a BTL mortgage is F

Do you know what this actually means????? Interest rates are not going up any time soon. HSBC and the other major banks have lots of people looking into what is going to happen with interest rates. We are in the cycle of 0.5 -> 0 -> 0.5 -> 1 for the next 5 years

You had to get them 8-12 years ago when base was over 4% life time trackers then seemed expensive but now it's paid off big time

Buy to let's pay roughly 20% interest on your original cash outlay. High interest savings account are not high interest. What's the max these days? 1-2%. The house market has only just begun the upward trend.

Professionally managed stock market funds will make 5-20% a year .

I cannot see how paying off a 1.79% mortgage can possibly be the best idea lol

Say you over pay £25k off this mortgage you could buy a buy to let with that £25k and the profit off the rent would clear your mortgage for free over time plus you have the price increase of the buy to let on top.

Instead of having 1 house increase say £150k you then have the increase of the buy to let on top say £100k value. Suddenly you have £250k houses so 10% increase is then £25k on top.

Each to their own, I have a huge mortgage at 2.39% biggest I could possibly get, bought 2 buy to let's then took on more debt to buy 2 more. Those 4 houses now cleared all the debt and profit is enough to cover my full mortgage. So now 5 houses increasing by X per year plus mortgage covered off the rent.

Or you could just pay one house off.

Just been reading about it just now, a new EU regulation came into force March 2016

I have heard its def not possible, this is coming from an accountant in Aberdeen :disappointed:

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11974704/The-200000-workers-who-will-struggle-to-get-a-mortgage-thanks-to-new-EU-rules.html

Anyone know of any bank who are allowing people, who work abroad, set up a Mortgage in the UK?

I now work in Denmark and pay their Tax and social security, but I will be topping up my National Insurance in the UK so there's no gap. It was only a month ago this new legislation with some banks came into force and it's really annoying to think I may not get a mortgage until I work back in the UK :disappointed:

You may also change your rates within HSBC if they reduce it further (hopefully) but may need to pay for booking fee only! at that time you would do some maths before switching...

We got screwed with our first mortgage at over 5% and in the end it was cheaper to pay the early termination charge rather than port the mortgage when we moved in 2015. What I learnt is that things can change quicker than you think so always consider carefully before fixing for say 5-10 years.

Although we lost out with the mortgage we purchased the property at a time when they were not selling, and sold for 20k more approx 3-4 years later. Moved to a brand new house and now got 2.89% fix which may not be the best but seems pretty good compared with before.

But you certainly learn from your mistakes with mortgages. Just glad I didnt first get on the property ladder in the boom years as many of those people are in negative equity now.

Yes you can make as much and as many times without any charges and ofcource you can move if things get worst again without penalty.

I believe this HSBC mortgage allows unlimited overpayments (most mortgages have an overpayment cap of 10% of the amount outstanding on Jan 1st each year before the ERC kicks in). If the mortgage rate was heading up up and up and getting close to what I was making on savings interest (currently 5%) I'd choose to overpay the mortgage, too.

Hi, as usual, Moneysavingexpert has good, clear advice:
http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

"If you've got this far, we're going to assume you're debt free, you have an emergency fund, and have a mortgage that allows some level of penalty-free overpayment. So now you need to check whether you should overpay your mortgage or save the cash elsewhere.
Overpaying your mortgage is all about this key decision. And what you should do depends on what makes financial sense. The simple rule of thumb is: If you can get a higher rate on your savings than you pay on your mortgage, saving wins. But if your mortgage rate is more than your savings rate, then it makes sense to overpay."

I was planning to take mortgage with HSBC, but I did not agree with one of their clauses in the mortgage deed.

"The mortgage security will be an "all monies charge". This means that the charge taken against your property will cover all and any debt you have with HSBC and it is not just limited to the amount of your mortgage debt. The debt may include overdrafts, loans, credit cards or money due under any facilities that HSBC has granted to you or grants you in the future"

Finally I decided to move away from them since they refused to modify the clause. Do a google search on the 'all monies charge' before proceeding.

Plus in few years time the rate will shoot up again with house prices may come down.

You havnt taken into account compound interest there matey

This is exactly what I am doing these days. took this deal and stash any extra cash to reduce the capital as rates are quite low. hopefully in 5 years time I will be free from debts and will enjoy the savings... Hurray

You can't get them now, in the olden days you could, way back before the recession

Because those deals used to exist before the credit crunch recession. You cannot get anywhere close to them now - some deals used to be base minus xx%. Basically meant people were borrowing interest free in some circumstances

Yeah personally I'd pay off my mortgage, I guess you could make more money investing it but there is always a risk. Plus although the interest rate is low now it may not be in 10 years time, so I'd rather pay it off while I can.

comment!!!!

Hee hee I'm on base rate + 0.37:p

​I think that is worse idea IMO, no offence mate. investing on stock market or btl may make you lose money as the market is currently on the peak. paying off your 1.79% is better idea than that. but you can also put your money on higher interest rate saving account.

If you have cash which fully offsets your mortgage of 2.5% and is likely to for a long time I'm thinking this isn't worth switching to?

If you dot have HSBC bank account, set up fee is £999 instead of £749. Same rate available though.

Good deal. I've just got my first with Santander at 1.89 iirc.

Aim to have it paid by year 12 though. God willing.

Booking fee kills it for me, but great for someone with a large mortgage.

I took 2 years fixed for 4.79% and by making overpayments I approx paid 17k over the two years period. But with this product without overpaymentm i will pay only 17k for the whole period of monthly repayments. With overpayments I can reduce this drastically!

Some people just wanted to be free of the debt as soon as they can. Personally for me, I favour over payments. I've got a 10 year fixed mortgage at 3%. My plan is to keep paying regular over payments so by the time the 10 years is over, a minimal amount will be left outstanding. I'll still be saving money and hopefully will use that to clear the outstanding debt.

What was the best lifetime tracker rate ever? Were there any that gave a discount on the base rate for the lifetime of the mortgage? I know there were some lifetime ones that were 0.2% above base rate in 2004ish.

It all depends on individual circumstances!

That is bad advise. Instead of paying your mortgage off saving you 1.79% interest which is the cheapest it's ever been you use the money instead of tying it up in your house and use it to make more money than the interest on your mortgage is. People who think paying your mortgage is the best idea is wrong for making money.

Use your cash to buy a buy to let or invest in a stock market fund. You will make far far more than you will save paying your mortgage off. Especially now.

Good rate but luckily I'm on BofE base +0.55%. :-)

​no

​Plenty of IT contracting jobs, go on itjobswstch.co.uk to get an idea of demand and areas. You might be better off getting a mortgage while your Permie as I think lenders want to see 2-3 years of company accounts, or they did in 2010 anyway. :smiley:

​Contractors don't hide their earnings from anyone, but they certainly pay less income tax.

They also pay Corporation Tax, VAT and (now) a tax on dividends. What's your point? :man:

This is why I love HDUK.
You learn so much from browsing these threads be it car leasing, mortgages or negotiating with Sky. :smiley:

That's right. A decent savings account is required. If you have a high mortgage rate then overpaying may be the right choice! Personally I like to have savings earning more than the mortgage rate as it also means if I'm made redundant I can keep paying the mortgage for some time. If I've overpaid that money's not gong to be available to do so.

Hi, Gordon.
Here's an example to explain:
If I had £2k sitting in the bank earning 5% that would make me £100 a year - as it is now tax free due to this week's rule changes.
If I overpaid that £2k off this HSBC mortgage at 1.79% I would save £35.60 interest per year.
In fact as long as I can find a savings rate better than 1.79% I will be making more than I would save. At the end of the mortgage term I can use the cash and interestI have accrued to pay off a chunk of the mortgage.

What sector Roger? and Lupeto you've not considered a mortgage because you choose to rent? or were frugal enough to buy outright? Random place to get into these questions, but I'm considering contracting within ICT (i've seen some very lucrative jobs within my field recently) and am very much interested in how it will affect things like applying for (re)mortgages etc (currently am permanent so have no such issues)

I'm sure there are better places to discuss this but you know... :smiley:

Needs to be interest only

Great deal, it was 1.99 when I looked a couple of months back. Still looking for a property at the moment but if this deal is still around when I find something its what I'll go for.


This is what I was going to go with recently but my purchase didn't go ahead in the end. However I think this deal is better than the Coventry one as its linked to the bank of England base rate, so is only going to rise as quickly as that does, but I don't believe the Coventry one is, so in theory they could put it up however they wished.

I am looking at borrowing a hefty sum @60% LTV short term for a new house purchase, intending to almost pay it all off once my current house sells. Are all offset mortgages classed as interest only? I know those with First Direct are. I know I will cop for the extra 3% stamp duty on a second home but you now have 3 years to claim it back once down to one house again. Only problem I foresee is not being granted the mortgage due to affordability factors, i.e. doubling up on all household outgoings for a few months. Anyone else been in the same boat? Bridging loans have much higher interest rates so don't want to go down that route. Thanks in advance.

Taxman does care. However, it is not economical for them to chase all small tax dodgers. Also, they can't openly chase big dodgers for they have too many legal loopholes in the system designed for them. So much unfair, this system. Honesty has no room here. Such a shame! Hard working permies are 50+% directly taxed and indirectly taxed so much extra by means of vat, cat, rat, fat,... :smiley: Legal immigrants who are permies are the worst affected. On one side, they're taxed badly and on the other side UKBA milking them hard enough with only blood left in the end. They don't milk just the cows, they milk the bulls too. Look at the visa fees. For that reason for one, I would like to see Brexit.

I fixed for 5 years at 2.09% no fee, I wouldn't save the grand fee over five years even if the base rate stays at 0.5% which it won't for much longer.
I would advise fixing as deals are good with no real risk. As soon as that rate rises once all the fixing deals will rise dramatically.

IMO this deal attracts more to people who thinks they can overpay and reduce their capital as much as they can in near future. Specially for contractors who can trash large sums into the mortgage! :laughing:

NO, you're wrong

Nice find, thanks OP

Great deal in current climate, although not for me as already on a lower rate with HSBC.

Anyone know what the Early Repayment Charge is for this, couldn't find it t'internet.

Thank you!

Not to sound stupid what's an ltv?

Is there any better deals available other than this?

This is not true. You think taxman does not care.... Taxman will catch you if you do small dodgy deeds but if you do bigger scams you are untouchable.... See details of Panama Leaks...:smile:

Yeah! I'm not surprised. All contractors hide their true earnings and pay less tax.

I had my uncle stuck on Standard variable rate as he never bothered to do search and maths. I asked him once what product he is on and he never knew. Dig into his details and saved him thousands if pounds....

The problem here is people are so busy in their lives and kids that they tend to forget the biggest and most important debt of their lives. Just imagine when I am free from my debt how much I will be saving. And how relaxed and relieved I will be once done...:innocent:

oh yeah, fully agree :smiley: I only replied "none" in relation to chances of avoiding the fees..........but actually left my fix early a few years back, having done the sums......so you are very right for sure :smiley:

Agree, but it is always better to do the maths......

any chance of negotiating out of metrobank 5year fix without paying the full penalties.

I guess that applies to the 123 Account..I changed from that when the fee increased and I didnt have anywhere near the 20k limit to get the full benefit of the interest.

some accounts now like halifax reward give you £5 a month if you meet the criteria irrespective of the amount in the account.

I just moved and my mortgage debt is pretty high, so been overpaying £300 a month...but agree people neee to check their mortgage rate against their savings rate.

60% LTV is pretty steep :disappointed:

Super hot.

This might have historically been the case but at the moment, with a mortgage like this one at 1.79% and interest rates like the 3% in a Santander 123 account it doesn't make sense to overpay. You're better off stashing the cash in the higher rate accounts and then paying it off as soon as your variable rate mortgage eclipses your savings interest rate.

Sounds like a good deal too. But I believe this is a deal for employed people and not for contractors like me.

Yeah, don't waste time with HSBC mortgages. They'll pre-approve, jump you through a million hoops and then sack you off at the last minute despite the mortgage being easily affordable. ****. I'm sure it's just a scam to get more people to get bank accounts with hsbc.
HSBC = Absolute **** timewasting cretins

and even more people dont

Got a feeling there was 0.14% over base rate lifetime tracker with Woolwich, not sure if there were any fees on top of that...

Anyone know if this applies to the buy to let mortgages?

I agree. These days savings on overpayments is more than getting interest on saving accounts.

You will save more interest than you make (as a rule) by making regular overpayments and cutting your mortgage down for if the rates do rise, your logic doesn't stack up

Speak to a IFA, get a mortgage comparison done showing true costs (print out) and compare it others on the market (depending which platform they are using). You will find they source a couple of hundred deals instead of a couple from 1 bank. Check the costs of the mortgage protection and then see if you are better off or not.

Holy smokes boe +0.17% is a sweet rate, mines boe +0.74% but not long to go till it's gone

Nowadays this is not that easy. Lenders know all these tactics and they check for company's profile before lending you a penny.

I won't go with this route personally. Anyways thanks for your suggestions.

That's a great deal, but what would you recommend for a first time buyer with a much higher LTV?

Is it for a term, yours is the best I have ever seen. Enjoy!

Do you realy think Brexit is going to happen? I think this is just to get some bargain.....

What's a Mortgage? :smiley::smiley::wink:

Since house prices are high and interest rates are at lowest, IMO you would be better off to pay off your biggest debts asap before the rates again climb up. Also due to house price hike existing mortgage holders gets benefit due to having already paid off more LTV :smirk:.

Surely only makes sense if you find a savings account that pays more interest than the mortgage rate?

Ofcource depends upon individual circumstances!

Do you mean tax on interest?

It looks like they have switched offers with First Direct (also HSBC), a base+1.29% rate was on here about a year ago. At the time the lowest rate was only available fee-free to existing mortgage customers but you could simply remortgage once on the higher rate and then immediately remortgage again onto the lower rate. I did that, I think it took 6-8 weeks or so.

As tax is no longer payable on savings keeping any spare money stashed in a decent savings account (at least until each December) instead of making regular overpayments makes more sense.

LTV is already mentioned at 60%. I am 35 and got this deal last week easily on advance account with 55% LTV.

HSBC seems to market super attractive rates and put tough conditions on actually getting the loan. Might save people time if OP posted all the hurdles - max LTV, minimum income, max life of mortgage (many people over 40 are already too old for a new mortgage!).

The good thing about this particular deal is that you can keep this rate as long as you want unlike other discounted tracker products. Even if the BoE rate hikeup you can easily be tied into a fixed rate product without any penalty.

​9 years contracting, paid off mortgage in 6 years. If I was in Permieville I'd still be paying it off with £1000's of interest! :smirk:

excellent deal particularly since the market isn't factoring a rate rise until 2020

Clearest sign yet that NIRP is on the way.

Remember, cash is king...but not in the bank!

Also, British Gold Sovereigns have no CGT as the are classed as legal tender :wink:

Well I hope this sort of deal is still around when I come off my fixed in a year!

If you dont want to be an advance customer you can have the same rate but with £999 booking fee. Still a good deal! :wink:

LTV is 60%!

Good deal if you have 40% equity. I'm on BoE+1.49% with HSBC currently and would recommend them. Pretty easy application process. The rate even changed in my favour during the application process and they allowed me to change to the new rate.

No it's not, it's 1.29% plus whatever the BoE base rate is. You can't say that will add up to 1.79% for the lifetime of the mortgage because it's a tracker mortgage, not a fixed rate.

I can't see 1.29% mentioned anywhere?

Perfect timing thank you for the info

As long as you can show a history of your contract being renewed HSBC will consider a mortgage for contractors.

i'll have to look into this as i'm annoyed so many mortgages tell me what i can repay, but as someone mentioned do you a)have to have a HSBC current account and b) have to have £1750 paid in a month ?

Sorry...deleted original post as I thought I was a bit drunk for t'internet :smile:

I took 25 year term, but aim to pay off early by piling money in the offset account and paying the mortgage off early when there's enough savings.

It's a variable rate of BaseRate + 1.35%, so no term time (not a discount rate).

Basically, any money you have in the savings account is deducted from the principle when calculating interest.

No penalty for taking money out of the saving account, apart from subsequently paying interest on the extra principle, due to less offset money in the savings account.

The key is that you're not actually overpaying and reducing the principle...any offset money is, in effect, reducing the principle, but you can access the offset money any time you like

@Martini: You are a lucky chap. who is your lender?

Just to add, thanks to HUKD a couple of years ago I switched to a HSBC BoE+2.44% mortgage; was super easy, basically you fill out a 3 or 4 page form then they just keep updating you. No hassle, saved thousands, now mortgage free. :smile:

Basically if you can afford to whilst interest rates are so low, dump all spare money into paying off your 'bricks and mortar'. There can be exceptions (if you're getting very good returns elsewhere I.e. investments), but I've had too much wine to carry on typing. :smile:

What is the term time for this rate. Is there any limit in offset account? if needed how long does it take to get the money back? Are there any charges if you take the money out?

Thanks oddballjamie for sharing it.

The interest rate is the BoE base rate plus 1.79%, not 1.79% as you claim, and will always be 1.79% above the BoE rate. It is a low rate but different to what your comment states.

It was on the calculator part. Not the easiest to find.

Key features

Lifetime Tracker Rate: This product will track the Bank Of England (BoE) base rate plus (1.29%).
Details of your interest rate will be set out in your Key Facts Illustration (KFI). HSBC lifetime tracker rates are variable and the rate is set at a fixed percentage above the BoE base rate, which is currently (0.5%). The interest rate you will pay will rise and fall in line with changes to the BoE base rate for the life of the loan.

Qualifying criteria: HSBC Advance is available to customers who pay in £1,750 or more each month, not including money transferred from other sole or joint personal accounts held with HSBC Bank.

No it is 1.29% + 0.5% base rate

It is 1.29% + 0.5% base rate = 1.79%

Is this 1.79 + bank of England interest rate which is 0.5 ?

The rate is 1.79 over base meaning if base rate moves up, your interest rate will always be that + 1.79%.