They have now introduced a similar product for those with 5% more equity, i.e. 65% LTV, at 2.64%. Those that go for this product will not see an increase in the interest charged until January 2027.
You should only choose this product if you are certain that you are in your 'forever home' because early repayment charges are high.
I'm pretty sure this is the cheapest ever 10-year fixed rate fee-free mortgage. It even beats Coventrys 2.69% (which is only available at 50% LTV)
Top comments
marathonic
16 Sep 1610#12
The reason a 10 year fix is so low now is because they've factored in the high likelihood of further drops in Bank of England base rate. However, how much are they going to go down? Probably a 0.15% drop to 0.1%. In the grand scheme of things, interest rate drops from a base of 0.25% is going to be negligible.
I'm not disagreeing that a 10 year fix MAY work out more expensive than a tracker - and, indeed, I'm sticking with my 1.54% lifetime tracker for now. However, a 10 year fix at 2.64% is never going to work out the abysmal decision that a 10 year fix worked out in the past. For example, in 2007 when Bank of Ireland base rate was 5.75%, 10-year fixes cost well over 6%. Someone with such a fix is now paying a premium of close to 5% over current short term products. However, someone taking this fix at 2.64% is likely only ever going to pay a maximum premium of about 1% over short term products.
For a lot of people, the risk that they'll be paying 1% extra per year over 10 years is much more palateable than the risk that they'll be paying an extra 4% per year in the latter part of the next 10 years.
delusion
16 Sep 166#2
I know a lot of people that have been stung by the early repayment charge on long term deals. Doesn't take much for your situation to change requiring a house sale or remortgage to take out equity.
Given current base rate id stick to a short term deal personally. With a 65% LTV you should be able to find a rate under 1.5 pretty easily. I just signed up to one at 1.14% 2 year with 60% LTV, plus getting 1% of payments back as cashback
lanc1979
16 Sep 163#36
There remains a tipping point though, where it is worth paying a fee. Quick maths on your 0.99% with fee of 1499, says you must have a mortgage of greater than 120,000 to see the benefit of paying a fee. Anything less, and a fee free mortgage at current rates (2.5% ish) is better value.
For anything over 120,000 that's a good deal though.
heathergreen1
16 Sep 163#32
Fairly good indication of the long term outlook if banks are offering rates as low as 2.64% fixed for 10 years!
All comments (63)
dannyb182
16 Sep 16#1
very good deal if you are in the right situation!!! unfortunately i dont quite have enough equity in my house :-(
steph350 to dannyb182
16 Sep 16#26
I prefer to buy on Cash than paying all equity of your house to Bank... :smiley:
delusion
16 Sep 166#2
I know a lot of people that have been stung by the early repayment charge on long term deals. Doesn't take much for your situation to change requiring a house sale or remortgage to take out equity.
Given current base rate id stick to a short term deal personally. With a 65% LTV you should be able to find a rate under 1.5 pretty easily. I just signed up to one at 1.14% 2 year with 60% LTV, plus getting 1% of payments back as cashback
dbailey10 to delusion
16 Sep 16#3
With what fee?
Franken to delusion
16 Sep 16#5
Agreed. HSBC doing a 2yr 0.99% 65% LTV at the mo. 1499 fee but you'll make that back plus loads more in interest savings over the course of the 24 months compared to this 10 year. I'm hoping this will still be around when my current 1.99% deal runs out next July.
Edit: It looks like they've added "to existing HSBC mortgage owners only" to the offer now.
benjai to delusion
16 Sep 16#18
I'm just in the process of remortgaging with Santander. What's this 1% cashback you mention? You get 1% back of what, your mortgage payments? I don't see this being mentioned in my terms so I'll have to check with my broker. Presumably you have to be a current account holder with them as well? Thanks
delusion
16 Sep 161#4
It's a £995 fee I think with santander (which can be added to the loan amount if preferred without an affect on your affordability/loan offered), but unless you are only borrowing a small amount it's much cheaper than the additional interest you would pay.
There is zero early repayment charge at any point with the santander mortgage, with this hsbc one you will pay thousands for every 100k borrowed if you need to change product.
Not suggesting this isn't a good deal for some, but just be aware of what else is possible
firstofficer
16 Sep 16#6
Please note that this is not for new customers..
I'll get my coat..
marathonic to firstofficer
16 Sep 16#8
The 75% LTV product, at 2.99%, is marked 'Existing HSBC Mortgage Holders Only'. The 65% LTV product isn't marked as such. It also comes up when you search under "Buy my first property". How could someone buying their first property not be a new customer?
marathonic to firstofficer
16 Sep 16#14
The 10 year fixed rate at 75% is marked "Existing HSBC Mortgage Holders Only" - so only available to current mortgage customers. It's a different product to that for those that hold a HSBC Advance Current Account.
This 10 year fixed rate at 65% is not noted as having any restrictions - neither current mortgage holders nor current current account holders.
simont_space
16 Sep 16#7
Be aware that the mortgage calculator on the HSBC web site gives incorrect figures.
I have contacted them through various methods and got the stock reply of yes we know. No timescale to correct it. All suggested applying for a Decision in Principle to see what you could borrow, a bit risky as each application goes on your credit file and reduces your chances of getting a mortgage.
It states up to 6.6x annual income rather than the maximum they will lend of 4.75x, and that is only to 15% of monthly customers.
justinlinham to simont_space
16 Sep 16#40
A decision in principle is a soft search and leaves no record on your credit file
paypeanuts
16 Sep 163#9
I've regretted every long-term fix I've ever taken out as they've never worked out cheaper than, say, a base rate tracker. Avoid them, kids.
marathonic to paypeanuts
16 Sep 163#10
most long term fixes in the recent past have been taken out at times where the Base rate has subsequently fallen significantly. we're at 0.25% now so there isn't much further to go.
fr3dy77_sp33d to paypeanuts
21 Dec 16#63
I guess your regrets will be over soon as the swap rates increased and mortgage rates at increasing across the board now
koolishy67
16 Sep 16#11
only tracker
marathonic
16 Sep 1610#12
The reason a 10 year fix is so low now is because they've factored in the high likelihood of further drops in Bank of England base rate. However, how much are they going to go down? Probably a 0.15% drop to 0.1%. In the grand scheme of things, interest rate drops from a base of 0.25% is going to be negligible.
I'm not disagreeing that a 10 year fix MAY work out more expensive than a tracker - and, indeed, I'm sticking with my 1.54% lifetime tracker for now. However, a 10 year fix at 2.64% is never going to work out the abysmal decision that a 10 year fix worked out in the past. For example, in 2007 when Bank of Ireland base rate was 5.75%, 10-year fixes cost well over 6%. Someone with such a fix is now paying a premium of close to 5% over current short term products. However, someone taking this fix at 2.64% is likely only ever going to pay a maximum premium of about 1% over short term products.
For a lot of people, the risk that they'll be paying 1% extra per year over 10 years is much more palateable than the risk that they'll be paying an extra 4% per year in the latter part of the next 10 years.
firstofficer
16 Sep 16#13
Simply that they are HSBC bank/investment/savings/credit card customers buying their first property with HSBC..
In essence what I'm saying is that there's a difference between existing mortgage-holders and existing HSBC customers..
I'll get my coat..
ran123ran
16 Sep 16#15
on their website it says early repayment charge is 1%
Actually, it looks like the first 10% is free every year but it's 1% per year remaining for anything above this.
That means that, if you take the mortgage out today and choose to repay it entirely tomorrow, the early repayment charge would be 9% of the initial figure.
Take a £100,000 mortgage for example. You'd pay £10,000 for free as your annual allowance and the other £90,000 would be charged at 10% - 1% for each of the 10 years remaining in the term.
delusion
16 Sep 16#17
I was just going by what was listed in the OP at the top, but it's been taken out now.
Make sure you read up thoroughly before taking any mortgage
tuckeral
16 Sep 16#19
Prob cos he/she has a Santander 123 current account (which gives 1% cashback on Santander mortgages I believe)
delusion
16 Sep 16#20
Yes, you need a 123 account. It cost £5 a month to have one now (used to be £2), but with interest on balance plus cashback for council tax, utility bills, phone, and mortgage it is quite lucrative for me over all.
Link isnt working right from my phone, but just find the 123 current account on the site and then click 'full details'
Rudess
16 Sep 16#21
Pity HSBC don't like to give mortgages to couples where one of them is Non-EU citizen
malachi to Rudess
16 Sep 16#24
wow! I never knew that was a problem. How did you get around that, went with another mortgage company?
andreasuk to Rudess
16 Sep 161#30
they must have a reason
marathonic
16 Sep 16#22
You'd need a 123 or 123-lite Current Account and you'd get 1% cashback on the first £1,000 you pay towards your Santander monthly residential mortgage payment. There are other household bills for which you'll get cashback as well.
There's a £1 monthly fee on the lite version and £5 on the full version - the full version has the advantage of a reasonably high rate of interest but is only worth it if you maintain a large balance.
Ah yes, I just saw it. Shame its only for the first £1000 so basically a tenner a month. Better than nothing I suppose. I already have a 123 so this is great. Glad I saw your post, thanks!
steph350
16 Sep 16#25
What about if you are not having HSBC Bank account and two years self employed tax returns? :disappointed:
marathonic
16 Sep 163#27
a lot of those that have been saving to buy in cash have found that property has rose faster than they can save. a lot of those that bought via a mortgage now find that the amount they have paid the bank to date dwarfs the amount of equity they now have in their homes
Howdie
16 Sep 16#28
HSBC are a waste of time..........they offer good rates and then make it so difficult to get a mortgage.
marathonic to Howdie
16 Sep 162#31
a mortgage should be difficult to get. to many people got mortgages too easily here in Northern Ireland and then, when property values halved, blamed the banks and the government and thought they should be bailed out. you can't have it all ways. In a way, the difficulty in getting a mortgage from HSBC is just HSBC protecting us from ourselves.
delusion
16 Sep 16#29
If you buy me a house I promise to like your comment
heathergreen1
16 Sep 163#32
Fairly good indication of the long term outlook if banks are offering rates as low as 2.64% fixed for 10 years!
gixer6
16 Sep 16#33
On money supermarket the Coventry is currently showing a 10yr fixed at 2.39% @ 50% LTV or 2.49% @ 60/65 LTV.
Would be significantly cheaper over a 10 year period.
Rob2404
16 Sep 161#34
Don't bother if you are a first time buyer! I've banked with them for 20 years. Had massive deposit, our wages covered the mortgage/bills and still had 700 spare each month. They gave us a mortgage in principle and when we found our house they turned around and said no! Oh and we both have a great credit rating. Joke of a bank and would not touch them for a mortgage again.
andreasuk to Rob2404
17 Sep 16#43
ive had the opposite experience just lately..although the bank looked into every financial details(some would say they were thorough) and took their time a bit I was given an offer. I had more than 700 to spare though. Probably the triple of that amount.
WaftyCranker to Rob2404
17 Sep 162#49
Totally agree. I went to them 6 years ago for a mortgage and I had been with them for over 10 years. At the time my wife and 3 year old daughter lived in a one bedroom flat so I was desperate to get a bigger house. My salary was £18000 gross but I actually earned over £26000 through working lots of overtime in a food factory and my wife worked part time as a care assistant.
I attended an interview at HSBC St Peters Street, Derby and it was one of the most humiliating experiences of my life.The
interviewer refused to take my overtime payments into consideration for a mortgage in my name. When I asked if I could get a
bigger loan as a joint applicant with my wife she said she could not take my wife's part time earnings into consideration and
bizarrely offered me less as a joint applicant than as a single applicant.
The best loan the interviewer could offer me was £43000 due to the fact I had £1700 credit card loan outstanding. No matter what I tried to say in my favour she would say she could not take it into consideration and looked for any small point to belittle me . Her advice to me was to get a job with a higher salary if I wanted a bigger loan.
In effect this interviewer made me feel like a low life low paid worthless scumbag who could have problems paying back a mortgage.
I told her " I'm just wasting my time here, aren't I ? " and walked out of the interview with tears in my eyes.
No one should have to go through this kind of experience.
A short while later I made an appointment with Santander. I did not expect much because I had only joined them a year earlier just
to take advantage of a £120 offer to switch to Santander. The experience I had was so different. I was treated like a human being and they were happy to take my overtime earnings and wife's part time earnings into account. We were offered a £70000 loan in principle.
On the advice of a friend I also had an interview with a mortgage advisor who managed to arrange a loan of £72000 from the Woolwich.
I won't forget the day we went into my HSBC bank for a £15000 bank transfer when we purchased our property. The manager came out to see us as it was a large amount and said she was sorry HSBC could not help us in the purchase. Yeah right. She was only concerned about our savings being taken out.
Now 6 years down the line we have saved up more than enough money to pay the mortgage off in full and you can rest assured I won't ever be applying for any loans from HSBC anytime soon.
gamerforever
16 Sep 16#35
Doesn't sound so positive! Any other opinions on hsbc?
lanc1979
16 Sep 163#36
There remains a tipping point though, where it is worth paying a fee. Quick maths on your 0.99% with fee of 1499, says you must have a mortgage of greater than 120,000 to see the benefit of paying a fee. Anything less, and a fee free mortgage at current rates (2.5% ish) is better value.
For anything over 120,000 that's a good deal though.
samspud
16 Sep 16#37
Most let you port your mortgage though with no
Fee? Would also consider the £1000 cash back from Halifax and slightly higher rate.
ashman33
16 Sep 16#38
HSBC have a tough application process
megastream to ashman33
17 Sep 16#51
Agreed - My experience was it's as if they don't want to lend.
Was intergated for 55 minutes face-to-face explaining every last expenditure (Mobile Bills/insurance/Gym insurance) no stone left un-turned.
In the end declined on the basis of "No Affordability" - despite banking with them for 25+ years with regular salary payment into account.
Wanted to borrow £140k my deposit was £150k.
Agree with the comments above. "this interviewer made me feel like a low life low paid worthless scumbag"
My credit score rating was 900+
cbrpaul
16 Sep 16#39
First Direct is also hard to get to mortgage with, HSBC is its parent company , so that explains this
emrahsener54
16 Sep 16#41
so I recently renewed my mortgage for 2.84 for 5 years. I guess I got it for not too bad.
Gatzar
17 Sep 16#42
You'd be nuts to go for this. If interests rates go up, the American dollar is finished. Is more likely to go into negative interest rates at this point. So the banks will pay you for having a mortgage:)
andreasuk
17 Sep 16#44
they can never go into negative interest rates..it's in the small prints
whatyadoinsucka
17 Sep 16#45
Not a bad rate if you have 35% equity and a big mortgage outstanding, but for me my tracker at 1.5% plus base is likely the only mortgage I.ll need..
It's all about risk and return, the banks only ever promote risk as a bad thing, thereby offering expensive products to cover the risk namely insurance and fixed rate mortgages.
If you can afford to overpay on a mortgage and you are not overstretched a base rate tracker will always be well below the medium-long term average interest rate.
(Ie far cheaper than paying fees and a high rate to fix)
Take out the longest possible mortgage period 30+years that will ensure the capital element of the repayment is low, hence if base rates go up you have plenty of leeway against earnings on the interest element. Don't get me wrong base rate trackers aren't for everyone, and you need a little financial nous about you to understand the true win win potential
adamsxi to whatyadoinsucka
17 Sep 16#46
Not quite win win if interest rates go up during the term
Rudess
17 Sep 16#47
Yes, I found another institution which was happy to lend money .
slannmage
17 Sep 16#48
No one ever lends money to me, had a job for 10 years since I left school, never missed a payment on anything and yet I cannot even get finance on a vehicle or a mortgage... only credit cards I can get are the crappy 39% Capital One things that I wont do.
No idea how it works, but it's odd.
elvis1234
17 Sep 16#50
Is there an age limit on this mortgage?
Howdie
17 Sep 16#52
I like others have been through the process of having the mortgage agreed in principle, and then losing the property I was buying due to HSBC dragging their feet and being passed from pillar to post. As I said don't waste your time with this crappy bank, also if you think they are looking after your interests then you are clearly deluded and don't know the first thing about the banking industry.
hearts
17 Sep 16#53
Brilliant deal with no down side ( apart from the interviewer mentioned above). If I needed a mortgage at the moment I'd jump on this. Image being a youngster starting out with the required equity this would be a great way to know your payments for the next 10 years without the worries we older people had of massive interest rates.
What would be even better would be decent 25 year plans to make a mortgage less of a time bomb.
hearts
17 Sep 16#54
I think there must be something your missing out here. I would think it very unlikely they would knock you back with a more than 55% deposit.
gill1808
17 Sep 16#55
Hot thanks op. Was just in the process of doing their 2.79 10 yr so every littlehelps.
The ERC is 5% in yrs 1-6, 4% yr 7 3% etc so not the 10% earlier quoted
megastream
17 Sep 16#56
No nothing missing out here..I spent 10minutes explaining why I had 4 mobile phone contracts from my account for my children.
In the end Barclays/Woolwich who I have never banked with offered without any any hesitation.
bobcoyle77
17 Sep 16#57
Coventry still better, free valuation for a start on purchases and free valuation and legals on Remortgage. 2.49 beats 2.64% over the 10 yrs on most deals above £50000. who has a £50000 mortgage these days. quidco and TCB cashback may be available too with some brokers
Franken
17 Sep 16#58
Your maths must be different from my maths then. Currently paying 194 on average in interest each month on a 1.99% deal. So halving that to 0.99% means I'm saving 97 quid per month on interest x 24 months = 2328 overall - 1499 fee = profit?
lanc1979
17 Sep 16#59
The proverbial "you" ie average Joe, not you as Franken.
I don't know the amount of your mortgage so can't do maths on yours, just the product which is a very good product as long as the mortgage amount is greater than 120,000 ish. Anything below 120,000 would be cheaper on a fee free mortgage.
Franken
17 Sep 16#60
Will have 108500 left on mortgage when my current deal runs out. Curerntly would be able to get 1.84% on 2 year no fee and plan on continuing to pay 700 a month no matter what.. Still works out cheaper imo but haven't worked out the finer details so you may be correct. A lot can and probably will change by next July when my current deal expires.
whatyadoinsucka
17 Sep 16#61
Agreed win/win is too positive a comment, but If interest rates go up, new fixes also go up well above a base rate tracker, so overall a base rate tracker will always be cheaper, no setup fees every couple of years for a start , yeah you may strike lucky with a low fix when rates rapidly rise, but the banks ain't stupid, it's all factored in to their current offerings and base rate ain't going nowhere for the time being..
The majority of trackers are unlimited payments too and can be paid off without yet more fees
666bandit666
18 Sep 16#62
Who'd mortgage a house when you can just buy it?????
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Opening post
http://www.hotukdeals.com/deals/10-year-fixed-rate-mortgage-2-79-max-ltv-70-0-booking-fee-hsbc-2476124
They have now introduced a similar product for those with 5% more equity, i.e. 65% LTV, at 2.64%. Those that go for this product will not see an increase in the interest charged until January 2027.
You should only choose this product if you are certain that you are in your 'forever home' because early repayment charges are high.
I'm pretty sure this is the cheapest ever 10-year fixed rate fee-free mortgage. It even beats Coventrys 2.69% (which is only available at 50% LTV)
Top comments
I'm not disagreeing that a 10 year fix MAY work out more expensive than a tracker - and, indeed, I'm sticking with my 1.54% lifetime tracker for now. However, a 10 year fix at 2.64% is never going to work out the abysmal decision that a 10 year fix worked out in the past. For example, in 2007 when Bank of Ireland base rate was 5.75%, 10-year fixes cost well over 6%. Someone with such a fix is now paying a premium of close to 5% over current short term products. However, someone taking this fix at 2.64% is likely only ever going to pay a maximum premium of about 1% over short term products.
For a lot of people, the risk that they'll be paying 1% extra per year over 10 years is much more palateable than the risk that they'll be paying an extra 4% per year in the latter part of the next 10 years.
Given current base rate id stick to a short term deal personally. With a 65% LTV you should be able to find a rate under 1.5 pretty easily. I just signed up to one at 1.14% 2 year with 60% LTV, plus getting 1% of payments back as cashback
For anything over 120,000 that's a good deal though.
All comments (63)
Given current base rate id stick to a short term deal personally. With a 65% LTV you should be able to find a rate under 1.5 pretty easily. I just signed up to one at 1.14% 2 year with 60% LTV, plus getting 1% of payments back as cashback
Edit: It looks like they've added "to existing HSBC mortgage owners only" to the offer now.
There is zero early repayment charge at any point with the santander mortgage, with this hsbc one you will pay thousands for every 100k borrowed if you need to change product.
Not suggesting this isn't a good deal for some, but just be aware of what else is possible
I'll get my coat..
This 10 year fixed rate at 65% is not noted as having any restrictions - neither current mortgage holders nor current current account holders.
I have contacted them through various methods and got the stock reply of yes we know. No timescale to correct it. All suggested applying for a Decision in Principle to see what you could borrow, a bit risky as each application goes on your credit file and reduces your chances of getting a mortgage.
It states up to 6.6x annual income rather than the maximum they will lend of 4.75x, and that is only to 15% of monthly customers.
I'm not disagreeing that a 10 year fix MAY work out more expensive than a tracker - and, indeed, I'm sticking with my 1.54% lifetime tracker for now. However, a 10 year fix at 2.64% is never going to work out the abysmal decision that a 10 year fix worked out in the past. For example, in 2007 when Bank of Ireland base rate was 5.75%, 10-year fixes cost well over 6%. Someone with such a fix is now paying a premium of close to 5% over current short term products. However, someone taking this fix at 2.64% is likely only ever going to pay a maximum premium of about 1% over short term products.
For a lot of people, the risk that they'll be paying 1% extra per year over 10 years is much more palateable than the risk that they'll be paying an extra 4% per year in the latter part of the next 10 years.
In essence what I'm saying is that there's a difference between existing mortgage-holders and existing HSBC customers..
I'll get my coat..
https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004046025000000000000000000
That means that, if you take the mortgage out today and choose to repay it entirely tomorrow, the early repayment charge would be 9% of the initial figure.
Take a £100,000 mortgage for example. You'd pay £10,000 for free as your annual allowance and the other £90,000 would be charged at 10% - 1% for each of the 10 years remaining in the term.
Make sure you read up thoroughly before taking any mortgage
http://www.santander.co.uk/uk/current-accounts/123-current-account
Link isnt working right from my phone, but just find the 123 current account on the site and then click 'full details'
There's a £1 monthly fee on the lite version and £5 on the full version - the full version has the advantage of a reasonably high rate of interest but is only worth it if you maintain a large balance.
Your text here
Would be significantly cheaper over a 10 year period.
I attended an interview at HSBC St Peters Street, Derby and it was one of the most humiliating experiences of my life.The
interviewer refused to take my overtime payments into consideration for a mortgage in my name. When I asked if I could get a
bigger loan as a joint applicant with my wife she said she could not take my wife's part time earnings into consideration and
bizarrely offered me less as a joint applicant than as a single applicant.
The best loan the interviewer could offer me was £43000 due to the fact I had £1700 credit card loan outstanding. No matter what I tried to say in my favour she would say she could not take it into consideration and looked for any small point to belittle me . Her advice to me was to get a job with a higher salary if I wanted a bigger loan.
In effect this interviewer made me feel like a low life low paid worthless scumbag who could have problems paying back a mortgage.
I told her " I'm just wasting my time here, aren't I ? " and walked out of the interview with tears in my eyes.
No one should have to go through this kind of experience.
A short while later I made an appointment with Santander. I did not expect much because I had only joined them a year earlier just
to take advantage of a £120 offer to switch to Santander. The experience I had was so different. I was treated like a human being and they were happy to take my overtime earnings and wife's part time earnings into account. We were offered a £70000 loan in principle.
On the advice of a friend I also had an interview with a mortgage advisor who managed to arrange a loan of £72000 from the Woolwich.
I won't forget the day we went into my HSBC bank for a £15000 bank transfer when we purchased our property. The manager came out to see us as it was a large amount and said she was sorry HSBC could not help us in the purchase. Yeah right. She was only concerned about our savings being taken out.
Now 6 years down the line we have saved up more than enough money to pay the mortgage off in full and you can rest assured I won't ever be applying for any loans from HSBC anytime soon.
For anything over 120,000 that's a good deal though.
Fee? Would also consider the £1000 cash back from Halifax and slightly higher rate.
Was intergated for 55 minutes face-to-face explaining every last expenditure (Mobile Bills/insurance/Gym insurance) no stone left un-turned.
In the end declined on the basis of "No Affordability" - despite banking with them for 25+ years with regular salary payment into account.
Wanted to borrow £140k my deposit was £150k.
Agree with the comments above. "this interviewer made me feel like a low life low paid worthless scumbag"
My credit score rating was 900+
It's all about risk and return, the banks only ever promote risk as a bad thing, thereby offering expensive products to cover the risk namely insurance and fixed rate mortgages.
If you can afford to overpay on a mortgage and you are not overstretched a base rate tracker will always be well below the medium-long term average interest rate.
(Ie far cheaper than paying fees and a high rate to fix)
Take out the longest possible mortgage period 30+years that will ensure the capital element of the repayment is low, hence if base rates go up you have plenty of leeway against earnings on the interest element. Don't get me wrong base rate trackers aren't for everyone, and you need a little financial nous about you to understand the true win win potential
No idea how it works, but it's odd.
What would be even better would be decent 25 year plans to make a mortgage less of a time bomb.
The ERC is 5% in yrs 1-6, 4% yr 7 3% etc so not the 10% earlier quoted
No nothing missing out here..I spent 10minutes explaining why I had 4 mobile phone contracts from my account for my children.
In the end Barclays/Woolwich who I have never banked with offered without any any hesitation.
I don't know the amount of your mortgage so can't do maths on yours, just the product which is a very good product as long as the mortgage amount is greater than 120,000 ish. Anything below 120,000 would be cheaper on a fee free mortgage.
The majority of trackers are unlimited payments too and can be paid off without yet more fees