HSBC have just revised their mortgage rates. I'm in the process of switching and this may well change my mind on which product to go for.
Current deals I'm considering (60% LTV) with HSBC Advance Account :
2Yr Fixed Advance @ 1.24% (0.05% lower than previous)
3Yr Fixed Advance @ 1.44% (0.25% lower than previous)
5Yr Fixed Advance @ 1.79% (0.2% lower than previous)
A £749 booking fee applies (£999 for non-Advance customers)
Follow the link to find the rate that suits you.
Top comments
ndl to thecatsasterix
25 Jan 1717#6
Can't see anything wrong with that. Everyone is trying to adapt and look for what's best for them.
thecatsasterix
25 Jan 1715#3
coming from a company that is slaughtering it's high Street banks and threatening to move it's operations overseas in a tantrum over Brexit, I would not on principle.
bilbob to thecatsasterix
25 Jan 1710#8
If you understood international banking, you'd understand why they are moving SOME staff... They are covering themselves in case the govt make an **** of brexit. This is a multi BILLION pound business... They HAVE to make contingencies, they all do.
superpacman1972
25 Jan 176#9
HSBC always seem to offer good rates on mortgages. They'll never come up on broker reports since they don't sell via intermediaries. They also have quite high LTVs, and are extremely picky about the credit worthiness of their customers, you will have to provide lots of info, and probably wait a while for an outcome. The customer service is a bit naff and slow, but IF you can get a mortgage offer confirmed, I'd say go for it as an ex-customer.
Latest comments (133)
ruheluddin86
19 Feb 17#133
Only 60k - 60% LTV?
whatyadoinsucka
18 Feb 17#132
Depends how big your mortgage is, may be cheaper to take a fee free at 1.94% 5 year with HSBC
ruheluddin86
14 Feb 17#131
Tesco have 1.78% BTL 5 year fixed, fees £1020. Is that a good deal!?
ruheluddin86
11 Feb 17#130
That's a great article! My link was supposed to direct you to a calculator showing what you end up paying depending on the year of terms/interest/fees etc. I'll try editing the link with the correct webpage.
Smartguy1
10 Feb 17#129
Now they taken the product fees off this deal deserves the heat it attracted.
Thanks. I saw HSBC dropped their 5 year to 2.09 (80%) on Tuesday and was going for that but now will have to ask the experts
ruheluddin86
9 Feb 17#123
Rates for which bank??
How easy is it to become an Advance customer with HSBC?
Father.Christmas
9 Feb 17#122
10 yr down to 2.64% today.
Father.Christmas
9 Feb 17#121
Some of the rates have dropped again tonight. E.g. 2 year fee saver is now 1.54 % instead of 1.64%
ruheluddin86
9 Feb 17#120
I only require 60k on my BTL. How do I work out what's best for me? My house is worth £95k so 63% LTV. I could pay extra 3k n get this down to 60%...
adamsxi
28 Jan 17#119
TSB 2.49% 60LTV
waby1234
27 Jan 17#118
Not really. Brokers have to tell you their earnings/commission and there wasn't much difference between HSBC and Bank of Ireland (who we went with).
Smartguy1
26 Jan 17#117
I was bored haha and only took interest at this point as switching affects me also. In addition some people don't get chance to read all of the posts or scan the ones that interest them whilst others will just look at the deal and think its good which as you say it depends on how much you owe. I only have a few years left on mine and nearly fixed for 5 years which would just see me out but as I wish to pay more than 10% of my outstanding balance each year to pay it off earlier I just done mine for 2 years. It offers a reasonable saving per month compared with the SVR now so will just use that and add it to the mortgage payment reducing further interest.
marathonic
26 Jan 171#116
That's a long post to explain what has already been said, i.e. this is only worth even considering for those with outstanding mortgages approaching, or exceeding, £100,000.
For those with smaller mortgages, look at fee-free options such as HSBC'S 1.96% 5-year fix.
Smartguy1
26 Jan 17#115
Perhaps not as good a deal as those who have ticked hot may think.
If you have a 30k mortgage over 10 years you will be paying £299.00 per month using an SVR of 3.75%. At 1.24% fixed you will pay £266.00 per month. A saving of £33.00 per month. Fixed for 2 years that's a saving of £792.00 in the fixed term period. But wait there is a product fee of how much, oh yes, £749.00. So in total a saving of £43.00 for the term. Hmmm, doesn't look that good to me. But I am not an advance customer so the 2 year deal ends up costing me more money. Lets try the 3 year deal.
£269.00 a month means a total saving of £1,080.00 less product fee. Still not tempted. Ok so here we go for 5 years.
£276.00 a month means a total saving of £1,380.00 less product fee. Still not looking good for me on £30k with 10 years to go. As I am not an advance customers that means the longest term only saves me £381.00. I can fix the same mortgage with Natwest at 3.1% for five years and whilst it only saves £9.00 a month compared to the SVR there is NO product fee giving a total saving of £540.00 which is better than the HSBC deal.
This deal is only any good if you are an HSBC advance customer comparing with Natwest who are not the cheapest. Not hot for me and anyone who has ticked hot and who isn't an HSBC customer and not checked the mortgage calculator tools available should really check if any of the fixed deals offered are in fact good for them. Although the low interest rates look inviting when looking at the product fee they are not tempting at all. My mortgage is with natwest and looking at changing to a 2 year fixed deal at 2.54%. Not as good % as HSBC but there is NO PRODUCT FEE. Natwest offer also a 5 year fixed at the same rate, 2.54% with a product fee. If you decide to add the fee to the mortgage it actually costs more than their own 5 year fixed at 3.1% with ZERO product fee. Mortgage companies must think we are stupid. Some are and don't check. Don't tick hot just because it's a low rate as it could end up actually costing you more than your present bank as I have just proved in the above figures.
Have a play at the link below, it's about halfway down the page. Enter your mortgage balance, pick the interest rate. Most banks mortgage rate (standard variable rate) is 3.75%. Put in how many years you got left it it tells you what you are going to pay per month.
marathonic
26 Jan 17#114
It's wrong because paying 1.79% with no tax relief is better than paying 3%, or more, with tax relief - especially with the reduced tax allowances available on mortgage interest.
also, I believe you can still claim tax relief on interest on the portion of borrowings used to fund the BTL - even if those borrowings are secured on your home as opposed to your BTL
foxdie01
26 Jan 17#113
I have my current mortgage with HSBC 80% LTV 2 years 1.84% (no fee) - wasn't too much of a ball-ache sorting it out either to be fair.
Cheapasnowt
26 Jan 17#112
Whilst the interest rate on the home property will be lower with the tax advantages of the BTL (albeit these are being severely cut over the next year or so) it makes more sense to pay off your home and pile it onto the BTL.
If someone can explain why this is wrong please do so
rebelspawn
26 Jan 17#111
What has lock, stock and barrel got to do with anything? You really have lost the context of my original post, just to pick a fight. Let me summarise for you:
OP says: they will withold custom from HSBC because they are threatening to move staff overseas
I say: dont blame HSBC, they are contigency planning due the outcome of the Brexit vote. The banking sector at large said this would happen beforehand and now it is. Others are doing it too, it is no reason to withold custom from the company.
simont_space
26 Jan 17#110
They are all 'threatening' to move some staff to have a presence in the EU. Moving lock, stock and barrel? Nope.
simont_space
26 Jan 17#109
The fall happened quickly,but to say something that was predicted long before Brexit was the result of brexit is wrong. The IMF who backed Remain?
The $ is strong hence no fast recovery back to expected levels.
RCUK
26 Jan 17#108
Guessing 'passporting' and the potential end of it and what it means to these huge banks is totally irrelavant in regards to what you see as a brexit hissy-fit.
Wonder how you voted... hmmmm
rebelspawn
26 Jan 17#107
I wasnt referring to the branch closures though. I was referring to the prvious poster saying 'threatening to move it's operations overseas in a tantrum over Brexit'
Its not a tantrum, and HSBC aren't the only ones. Its related to the EU passporting for financial services, and is a direct result of Brexit.
As for the negativity, i believe i was the one who said its no use complaining. We have to get on with it. It was the original post that i was quoting who was moaning. I was merely pointing out that he/she was sending their negativity in the wrong direction.
trevwmitchell
26 Jan 17#106
ditch not Dutch.
trevwmitchell
26 Jan 17#105
if poss Dutch the BTL and just extend the mortgage on your own house . have the BTL owned outright.
trevwmitchell
26 Jan 17#104
i do have a 999 setup fee.
trevwmitchell
26 Jan 17#103
I'm in process of signing up for Barclays 10yrs at 2.59, also hoping that the 10 yrs will kill my mortgage, so while I could opt for a lower rate I'm happy in the knowledge that I'll be finished in 10yrs.
Master G
26 Jan 17#102
HSBC agreements in principle are valid for six months.
whatyadoinsucka
26 Jan 17#101
Agreed Entirely, the simple calculation is more a Yardstick by which to judge, and as you say the bigger the amount the more impact,
whatyadoinsucka
26 Jan 17#100
ps. if you want an interest only mortgage with hsbc you or your partner needs to earn at least £100k per annum and meet all other requirements too.
I was advised this when i spoke to them last month
Scorpion
26 Jan 17#99
1.) Expect small interest rate increases over the coming 12-36 months - that's what the markets say at present anyhow.
2.) The fall in the pound was as a direct result of the Brexit result and the potential impact, it was actually looking like it would rise the days before the result on the basis of poll results.
3.) The IMF are indeed a rather useless lot of paper pushers.
4.) The truth is, Brexit will take longer than many predict, as such our economy will do as it normally does and follow that of the US.
TP2
26 Jan 172#98
I haven't forgiven them for getting rid of Midland.
I want a British bank for British people.
TP2
26 Jan 171#97
In my personal experience I found HSBC to be fantastic when taking out a mortgage.
I had originally planned on applying online then thought that given the sums being talked about it was probably better to speak to someone face to face. It took a week to get an appointment but after going through incomes and committed outgoings I got a pretty good indication that I would be approved. Sure enough I got the go ahead the next working day.
I was a bit worried because I had heard they were very fussy and I was after 90% LTV but the process couldn't have been simpler. I'd recommend them to anyone.
TMagic
26 Jan 17#96
and you can renew 3 months earlier when you stay with Nationwide, i am praying september comes by with no increases!! i have a potential £300 saving a month coming my way.....
naz400r
26 Jan 17#95
With first direct, I agreed to remortgage in October 2016 with a completion date of March 2017.
naz400r
26 Jan 17#94
First direct had a 5 year fee free 2.18% that I opted for. That disappeared and HSBC have put out a better rate.
rob200375
26 Jan 17#93
Hi,
I wasn't sure if my deal was good - but seems it might have been 1.69% 3 yrs fixed no fee with santander
cambb
26 Jan 17#92
Any ideas how long you can secure these deals? My fixed rate runs out in July.
ExStaff
26 Jan 171#91
Your calculation is correct for an interest only mortgage, but not for a repayment mortgage, your interest calculation is incorrect after the first capital repayment.The shorter the mortgage term the less accurate this calculation will be as the principle loan will reduce quicker. Hence why balances larger than £79k can (not always) be generally better off without an arrangement fee - and why many say over £100k. You will have to calculate the difference in the monthly mortgage repayments over the deal term, to account for the reduction in the loan (the repayment element of the monthly payment). Hope this helps for future comparisons. I am a fee free advocate on smaller loans, unless there is a significant difference or the fee is being repaid on completion or paid off by the end of the deal period. Otherwise you are adding to the loan possibly several times. The extra interest over term from added fees is never calculated (mostly because we can't predict future rates).
whatyadoinsucka
26 Jan 171#90
Yes very simple math, calculate the difference in percentage by your loan amount over the term
I.e. £50k loan at 1.99% or 1.74% £999 fee 5 year
I.e. 0.0025 x £50,000 x 5 years = £625 cost versus £999 go fee free product
Or breakeven point loan value
£999/5/0.0025 = £79,920
Ie under £79k go fee free, over take the lower rate with fee
whatyadoinsucka
26 Jan 171#89
** fee free 1.96% 5 year fix **
Thanks op been waiting for this I have an outstanding offer on a remortgage and the fee free 5 year fix has come down from 2.19% to 1.94% so will save £875 over the 5 years..
As others have said if your credit and spending is too high then you may fail HSBC criteria , we easily covered are requirements but they wanted everything and more.
Was gonna take the fee, but the fee free worked out cheaper :sunglasses:
Sienio48
26 Jan 17#88
good, only if prices of houses wouldn't be so high in my area :/
ataritheone
26 Jan 17#87
Depends on the amount you're borrowing, if it is a large mortgage, might not be worth higher rate over the 5yrs. Not saying you're wrong, just advising to do the maths. In case of a 200.000 mortgage over 5 years 1.79% is actually £1000 cheaper than 1.99%
Even if you factor the arrangement fee in.
wordmongerer
26 Jan 171#86
And yet the pound plummeted the day of Brexit.
simont_space
26 Jan 17#85
Just had a look at Stafford Railway BS (some decent rates) went through their calculator. Complete joke. £115,000 on income of £50+k pa and 30% deposit, no my outgoings aren't excessive. :smiley:
simont_space
25 Jan 17#84
I would guess bad from the comments.
simont_space
25 Jan 171#83
Oh dear. The tears still falling? :smiley:
HSBC core business is in the far east. They have threatened for years to move, nothing to do with Brexit. All banks are closing branches, it's an old model. Do you mean the scaremongering about an immediate punishment budget? Immediate loss of 500,000 jobs? Pensioners losing 1/3rd of their income?
Why are all Remainiacs so negative and depressing.
Cheapasnowt
25 Jan 17#82
Am looking for BTL re mortgage. Is their lending criteria good or bad?
rattla
25 Jan 172#81
They do go overboard on recording every last thing for affordability, in reality you'll probably struggle to get 3.5x.
I extended my mortgage with them a year or so ago, and struggled to get over 3x, irony was I was only putting the loan amount back to what it was 5 years prior. Despite my earnings being over 25% higher than when I got the mortgage at first!
ExStaff
25 Jan 17#80
Nationwide currently offer lower rates to exisiting customers, too. Always wave my clients off when I send them to Nationwide. 'It was nice meeting you'
tmargitson
25 Jan 171#79
Be careful with HSBC. Sometimes the rate isn't everything and good advice isn't just recommending on rate itself. Service and timescales come into it as well and both very poor with HSBC from my experience (mortgage broker). They only want the "cream of the crop" customers, so avoid if you have multiple income sources, high outgoings, more than 2 dependents, any credit issues etc. If you fit the criteria and just want best rate, and you're prepared to wait and be asked lots of questions at underwriting then give it a try!
vod
25 Jan 17#78
There actually pay the same, there criteria is a bit dated but getting better and as for service I can generally get offers through quicker than the bank itself... Also known their in house advisers not know their own criteria which is astonishing and worrying at the same time!
HSBC do now deal with brokers and have exclusive deals out. As an ex staff member I'd caution jumping at HSBC unless you are high net worth or low LTV (ideally under 60%, anything above 75% will need to be tip top). HSBC appetite for risk is lower than most. Unless your mortgage balance is well over £100k I'm fairly confident most would do better on a fees free deal. They rarely come in as THE most competitive in my research, but can't knock some of their rates (my research includes direct deals).
parvatik
25 Jan 17#75
hi, having gone through this dilemma, it just boils down to whether you want peace of king for that additional year or you are happy to risk it. I would either look at fixing for 2 years or 5 years.
HugoLuca
25 Jan 17#74
HSBC are way to picky in accordance with criteria list ... Be you in a better financial position though not inline with criteria. You may get a different percentage rate offered higher of course :P
adamellison
25 Jan 17#73
people are failing to see 60% ltv . you will get rates as low as this however you would not get this rate on a 90%ltv
xchaotic
25 Jan 17#72
Or buy some USD or Yen and buy twice the amount GBP in a year or two.
adamsxi
25 Jan 171#71
TSB are best for a 10 year deal
bilbob
25 Jan 171#70
Only when it suits them...
happydeals
25 Jan 17#69
Last time my mortgage application was approved, but I could not agree with some of the clauses in the mortgage agreement and had to cancel it. Read the agreement thoroughly before you sign.
bigdeal66
25 Jan 17#68
Savings rates look great,must put some away.... :confused:
I read the closure of branches was due to the fact that apparently 90% of people do most of their banking online now.
As for moving abroad - We'll every time I've called them throughout the years, the customer service/accounts teams have been based somewhere in Asia.
smk77
25 Jan 175#66
Don't the IMF get everything wrong? That's what Brexiters were saying...
simont_space
25 Jan 17#65
And yet we haven't left have we. Sterling was 15/20% overvalued. The IMF commented on it 2015. The drop was coming irrespective of Brexit vote.
shopaholic8
25 Jan 172#64
The deal with Nationwide is £250 cash back per mortgage. So I have ported a couple of times when moving house and remortgaged, so have 4 separate mortgages. Hence I got £1000 cash back, so worth factoring this in if you are with Nationwide and aren't looking for a long term deal. They have lots of short term deals with no early repayment penalties, which are ideal to take and then watch the market, if it looks like rates may go up then you could look at longer term deals.
superpacman1972
25 Jan 17#63
Things have changed since I had one (2010). You are indeed correct, they are now available on limited intermediaries, but I believe this only started in 2014. Stand corrected.
Yakkity
25 Jan 17#62
Sound advice there. Also worth bearing in mind the fee can be added to the mortgage and paid off with overpayments (which is what I'm going to do - overpay £250/month for 3 months)
Yakkity
25 Jan 17#61
Glad it helped you :smiley: My current HSBC 2yr fix is coming to an end and so decided to go through the telephone 'mortgage advice' route rather than simply switching online. To be fair to our advisor, he did say that they would be changing rates today. The paperwork at the higher rate was sent out yesterday and he said, if the rates go down on today to just call them and they'll send out a new set of forms.
Now I'm trying to decide whether to stick with our plans and go for the 2yr @ 1.24% (£216k mortgage) or go for 3yrs @ 1.44%... Either way, paying the fee is currently cheaper than the feesaver products.
jaydeeuk1
25 Jan 17#60
If they make a f&ck up of it, the tax payer will bail them out anyway (again)
endothecat
25 Jan 17#59
Was the coat made by immigrants?
endothecat
25 Jan 17#58
I find in-branch staff to be sub-par but phone / online no problems
endothecat
25 Jan 17#57
It means you're only borrowing 50% of the current market value of the property. So if you property hasn't changed in price since you bought it, then yes that means you have to have paid half of it back. If the property price went up or down, then you calculate accordingly amount outstanding on mortgage divided by current market price.
endothecat
25 Jan 17#56
They have to hedge floating vs fix and they take on credit risk and collateral risk / liquidity of collateral. If it were so easy to run such an operation efficiently and profitably there would be a lot more competitors. Yay capitalism.
Nobull
25 Jan 17#55
Does maximum LTV of 50% means you have to have paid off half the value of your house already, or have a 50% deposit? 50% seems quite low.
R0B
25 Jan 17#54
Good sell. Imagine hsbc broker payments are some of the smallest in the market.
waby1234
25 Jan 17#53
We recently completed on a new mortgage and our mortgage advisor highlighted that HSBC were currently flagged as red for the brokers as there were severe delays in HSBC processing applications and paperwork with turnaround around 12 weeks plus. May be worth considering other providers if needing to complete quickly.
wong_go_wild
25 Jan 17#52
well all I am saying is they are either wishing we the consumer gonna be spending our way out of a sticky one or they fully expect some sort of crash. no one gives our almost free money if they don't want something back
wong_go_wild
25 Jan 17#51
well all I am saying is they are either wishing we the consumer gonna be spending our way out of a sticky one or they fully expect some sort of crash. no one gives our almost free money if they don't want something back
Kay135
25 Jan 17#50
There is a bias towards paying no fee by most customers when in fact paying a fee can often be more financially beneficial over the period of the deal. You need to do the maths for your particular loan but please don't be immediately put off by a fee as you really could be losing out. If of course you simply cannot afford to pay any fee then you need a no fee product but for most people it should be a lot what works out cheaper across the deal period, taking into account their personal needs and circumstances.
SmokingMonkey
25 Jan 17#49
omg you just saved me a load of dosh. was about to send my forms off to them today at a higher rate. will be on the phone to them later to get updated docs! So glad you posted this otherwise would have been kicking myself tomorrow. :sunglasses:
bobcoyle77
25 Jan 17#48
always check cashback sites for brokers who pay cashback and don't charge fees.
vod
25 Jan 17#47
You should get professional advice really. It is very circumstantial as to what is best for each individual's position.
vod
25 Jan 173#46
This is incorrect, I am a broker and have access to HSBC, if your broker cannot source them then look for a broker with a much wider scope. Not just HSBC that's 1.24% for instance.
delusion
25 Jan 17#45
Unless getting a mortgage of 250k or more (if a 2 year term), in which case paying the product fee is cheaper. This is very common in the south east as average property value is higher than that.
bagga212
25 Jan 17#44
their lending criteria is like no other, my experience of their BTL products
ddude05
25 Jan 171#43
I was told any mortgage below 100k it would be pointless paying the extortionate fee
tafarrant
25 Jan 172#42
I got 1.99% Nationwide 5 years no fee..
Pointless paying a £999 set up fee to save .20% ( nationwide 1.79% I think with fee)
greyhound11
25 Jan 17#41
heat
condado1967
25 Jan 17#40
I have just recently re-mortgaged with HSBC what a palaver their online application is dreadful. had to phone them in the end. They lost our bank statements and had to re-send them. We went into the branch who then proceeded to fill in the application but they were unaware that because we had started it online they couldn't finish it in branch!! We had 3 lots of compensation for all the muck ups that they did, apparently because of the volume of applications their system cant cope. Rates very good if you can get them.
thecatsasterix
25 Jan 1715#3
coming from a company that is slaughtering it's high Street banks and threatening to move it's operations overseas in a tantrum over Brexit, I would not on principle.
ndl to thecatsasterix
25 Jan 1717#6
Can't see anything wrong with that. Everyone is trying to adapt and look for what's best for them.
bilbob to thecatsasterix
25 Jan 1710#8
If you understood international banking, you'd understand why they are moving SOME staff... They are covering themselves in case the govt make an **** of brexit. This is a multi BILLION pound business... They HAVE to make contingencies, they all do.
Master G to thecatsasterix
25 Jan 171#11
its, not it's.
M_z to thecatsasterix
25 Jan 172#17
Few people use high street bank branches though, they all bank online: for most people getting a cheque is a pain in the bum as it means a visit to the branch. You expect a business to run efficiently don't you? Its not like it is a charity. Tough on the staff though, I sympathise with them. "a tantrum over Brexit" - I think you are the one having a tantrum, the banks are concerned that some of their European business, and especially the Euro related business, wont be possible in Britain when it is completely out of the EU. They are simply planning ahead. Why wouldn't they?
asadjani2016 to thecatsasterix
25 Jan 17#30
learn hw banking works u Wil do the same if u losing billions.
joedastudd to thecatsasterix
25 Jan 17#33
You understand that the UK financial industry relies heavily on passporting and other EU member only stuff right?
More so for a bank to operate they need stability.
May publicly announced she won't allow freedom of movement which is an integral part of the EU so hard brexit only.
That means maximum uncertainly and massive hits to profits if they don't move at least the passporting chunk into the EU.
It's like if there was a big forecast for blizzards the whole month of December and your annoyed a old person is buying a winter coat, stocking up on food and looking into going on holiday for a good chunk of the month.
Marekj to thecatsasterix
25 Jan 17#34
They aren't moving any operations overseas other than around 100 investment bankers. They've just spent tens of millions on a new UK headquarters in Birmingham, which has yet to fully open.
rebelspawn to thecatsasterix
25 Jan 171#39
On the plus side though, we now have an extra £350 Million to spend on the NHS every week. Oh, wait...
The economic impacts were put forward by the remain camp and 'rubbished' as scaremongering. It's too late to complain now. Business is business, they will protect their interests and they said as much before the vote. Dont blame HSBC, blame the 51% that voted for this
herodave
25 Jan 17#38
Not sure whether to fix for 2 or 5 years. 2 years is cheaper... so I should go for that, right?
MlKEY
25 Jan 17#37
Great input there, mate
ddude05
25 Jan 17#28
Renewal up in May, currently with Nationwide. They can give me a 5yr deal at 1.99% with 60% LTV, No Fee and £250 Cashback! Winner winner. Stick with the Building Societies!
paul106 to ddude05
25 Jan 17#36
Depends how much you are borrowing and for how long? Always do a comparison to avoid paying more in the long term :wink:
for me it would have to got to 7% before it approached rental rates and if that happened I highly doubt rent prices wont increase. Its a fact houses are stupidly priced but what is the advice? never buy? There is a risk but even at 10% I could still afford the mortgage so I don't see the problem borrowing 5x (or more) if it makes financial sense
jomay
25 Jan 17#32
Not only that, but renting is probably cheaper than a mortgage if rates go to >3%, at least in London!
.
For example: a London 3 bedroom flat costs around 750k£, but rent is at most ~30k£. So rent is roughly 4% of the value of the property. The alternative, buy-and-pay-interest costs upkeep (at least 1% p.a.) and interest (1.x% now, but 3% possible). And that doesn't factor in that the value of the property will go down as interest rates go up.
On the other hand, I have little hope that politicians will ever allow house prices to come down.
Mada06
25 Jan 17#31
Banks tend to lend on affordability rather than a multiple. Someone could be taking home £3k after tax but have loans, car hire agreements, child maintenance etc to pay.
My experience having gone through this process this week is that I was scrutinised far more this time around than I was 3 years ago.
Daywalker04
25 Jan 17#29
Exactly, and if house prices drop 10% then that quickly wipes out any 'savings'. Ah no, wait. House prices can only go up
ddude05
25 Jan 171#27
Renewal up in May, currently with Nationwide. They can give me a 5yr deal at 1.99% with 60% LTV, No Fee and £250 Cashback! Winner winner. Stick with the Building Societies!
wong_go_wild
25 Jan 171#20
all of the banks clearly expect the economy to do badly with zero growth or recession to come even in the climate of rising inflation and potential rise of base rate.
myOpinion2 to wong_go_wild
25 Jan 17#21
Base rates may have to rise to combat imported inflation due to the post brexit collapse in sterling
smala01 to wong_go_wild
25 Jan 17#26
That will never happen as feckless people blamed the banks for lending them too much in the last boom.
M_z
25 Jan 17#25
"mortgage repayment at current rates " which is exactly the point.
badasschris
25 Jan 17#24
really? I borrowed closer to 5x and with the mortgage repayment at current rates far cheaper than renting.
tmohammad
25 Jan 17#18
Anyone know what who is offering the max multiples of salary for Morgages (Most do 3x or 4x) thats nowhere near enough to buy a house if you are on an average salary and the sole earner!
M_z to tmohammad
25 Jan 17#22
Depends where you live, but thats enough in many parts of the country for a small house or a flat. But its not a good idea to borrow more than you could afford if interest rates returned to somewhere near their historic average, thats why 3x or 4x is all most will do.
djbenny1 to tmohammad
25 Jan 17#23
Based solely on what you just said, it sounds to me like you're asking for a recipe for disaster.
M_zs advice is very sound.
neoshinobi
25 Jan 17#19
Yeah what do that have to worry about. Brexit means Brexit
simont_space
25 Jan 17#16
Anyone tried to get even a remotely accurate figure on their lending calculator? Have been able to get it as high as 6x salary, but their help line states 4.5x is max for only minority of customers.
Franken
25 Jan 172#15
They do do fee free mortgages. 2yr @ 1.64% for example for a 60% jobbie. They also do them for 3 year deals and 5 year deals.
tighty
25 Jan 17#5
Im looking too and this 5 yr now seems to be the best around beating the Skipton offer. However im looking for a 10 year one and HSBCs is still too high (although not as high as the 10 year one im currently on :disappointed: )
heavymetal12345 to tighty
25 Jan 171#14
when you say too high 2.99% is still good in the long term game.
it's not that long ago rates were 5 or 6
and not that long before that 10 plus !!
I know history shouldn't be used. But
just how long can the rates stay this low.
low rates are becoming normal. but will this be true forever ?
just something to think about.
( disclaimer not financial advise
heavymetal12345
25 Jan 171#13
they have a fee free 10 year at 2.99
for up to 60 loan value.
superpacman1972
25 Jan 176#9
HSBC always seem to offer good rates on mortgages. They'll never come up on broker reports since they don't sell via intermediaries. They also have quite high LTVs, and are extremely picky about the credit worthiness of their customers, you will have to provide lots of info, and probably wait a while for an outcome. The customer service is a bit naff and slow, but IF you can get a mortgage offer confirmed, I'd say go for it as an ex-customer.
R0adRat to superpacman1972
25 Jan 171#12
I second this, always have some of the best if not the best rates on the market but very strict affordability criteria. If you've got a good credit rating and aren't trying to borrow in the upper echelons of your affordability then definitely consider them. I found that if you're a current current account customer then the DIP and final approval is instant online? I haven't gone with them for my latest mortgage so may have changed.
fireman1
25 Jan 17#10
Yeah, not the tens of thousands of pounds in interest over 20 to 30 years.
Poor banks.
Opening post
Current deals I'm considering (60% LTV) with HSBC Advance Account :
2Yr Fixed Advance @ 1.24% (0.05% lower than previous)
3Yr Fixed Advance @ 1.44% (0.25% lower than previous)
5Yr Fixed Advance @ 1.79% (0.2% lower than previous)
A £749 booking fee applies (£999 for non-Advance customers)
Follow the link to find the rate that suits you.
Top comments
Latest comments (133)
How easy is it to become an Advance customer with HSBC?
10 yr down to 2.64% today.
For those with smaller mortgages, look at fee-free options such as HSBC'S 1.96% 5-year fix.
If you have a 30k mortgage over 10 years you will be paying £299.00 per month using an SVR of 3.75%. At 1.24% fixed you will pay £266.00 per month. A saving of £33.00 per month. Fixed for 2 years that's a saving of £792.00 in the fixed term period. But wait there is a product fee of how much, oh yes, £749.00. So in total a saving of £43.00 for the term. Hmmm, doesn't look that good to me. But I am not an advance customer so the 2 year deal ends up costing me more money. Lets try the 3 year deal.
£269.00 a month means a total saving of £1,080.00 less product fee. Still not tempted. Ok so here we go for 5 years.
£276.00 a month means a total saving of £1,380.00 less product fee. Still not looking good for me on £30k with 10 years to go. As I am not an advance customers that means the longest term only saves me £381.00. I can fix the same mortgage with Natwest at 3.1% for five years and whilst it only saves £9.00 a month compared to the SVR there is NO product fee giving a total saving of £540.00 which is better than the HSBC deal.
This deal is only any good if you are an HSBC advance customer comparing with Natwest who are not the cheapest. Not hot for me and anyone who has ticked hot and who isn't an HSBC customer and not checked the mortgage calculator tools available should really check if any of the fixed deals offered are in fact good for them. Although the low interest rates look inviting when looking at the product fee they are not tempting at all. My mortgage is with natwest and looking at changing to a 2 year fixed deal at 2.54%. Not as good % as HSBC but there is NO PRODUCT FEE. Natwest offer also a 5 year fixed at the same rate, 2.54% with a product fee. If you decide to add the fee to the mortgage it actually costs more than their own 5 year fixed at 3.1% with ZERO product fee. Mortgage companies must think we are stupid. Some are and don't check. Don't tick hot just because it's a low rate as it could end up actually costing you more than your present bank as I have just proved in the above figures.
Have a play at the link below, it's about halfway down the page. Enter your mortgage balance, pick the interest rate. Most banks mortgage rate (standard variable rate) is 3.75%. Put in how many years you got left it it tells you what you are going to pay per month.
also, I believe you can still claim tax relief on interest on the portion of borrowings used to fund the BTL - even if those borrowings are secured on your home as opposed to your BTL
If someone can explain why this is wrong please do so
OP says: they will withold custom from HSBC because they are threatening to move staff overseas
I say: dont blame HSBC, they are contigency planning due the outcome of the Brexit vote. The banking sector at large said this would happen beforehand and now it is. Others are doing it too, it is no reason to withold custom from the company.
The $ is strong hence no fast recovery back to expected levels.
Wonder how you voted... hmmmm
Its not a tantrum, and HSBC aren't the only ones. Its related to the EU passporting for financial services, and is a direct result of Brexit.
As for the negativity, i believe i was the one who said its no use complaining. We have to get on with it. It was the original post that i was quoting who was moaning. I was merely pointing out that he/she was sending their negativity in the wrong direction.
I was advised this when i spoke to them last month
2.) The fall in the pound was as a direct result of the Brexit result and the potential impact, it was actually looking like it would rise the days before the result on the basis of poll results.
3.) The IMF are indeed a rather useless lot of paper pushers.
4.) The truth is, Brexit will take longer than many predict, as such our economy will do as it normally does and follow that of the US.
I want a British bank for British people.
I had originally planned on applying online then thought that given the sums being talked about it was probably better to speak to someone face to face. It took a week to get an appointment but after going through incomes and committed outgoings I got a pretty good indication that I would be approved. Sure enough I got the go ahead the next working day.
I was a bit worried because I had heard they were very fussy and I was after 90% LTV but the process couldn't have been simpler. I'd recommend them to anyone.
I wasn't sure if my deal was good - but seems it might have been 1.69% 3 yrs fixed no fee with santander
I.e. £50k loan at 1.99% or 1.74% £999 fee 5 year
I.e. 0.0025 x £50,000 x 5 years = £625 cost versus £999 go fee free product
Or breakeven point loan value
£999/5/0.0025 = £79,920
Ie under £79k go fee free, over take the lower rate with fee
Thanks op been waiting for this I have an outstanding offer on a remortgage and the fee free 5 year fix has come down from 2.19% to 1.94% so will save £875 over the 5 years..
As others have said if your credit and spending is too high then you may fail HSBC criteria , we easily covered are requirements but they wanted everything and more.
Was gonna take the fee, but the fee free worked out cheaper
:sunglasses:
Even if you factor the arrangement fee in.
HSBC core business is in the far east. They have threatened for years to move, nothing to do with Brexit. All banks are closing branches, it's an old model. Do you mean the scaremongering about an immediate punishment budget? Immediate loss of 500,000 jobs? Pensioners losing 1/3rd of their income?
Why are all Remainiacs so negative and depressing.
I extended my mortgage with them a year or so ago, and struggled to get over 3x, irony was I was only putting the loan amount back to what it was 5 years prior. Despite my earnings being over 25% higher than when I got the mortgage at first!
http://www.thisismoney.co.uk/money/saving/article-4153288/HSBC-rates-hover-just-zero.html
As for moving abroad - We'll every time I've called them throughout the years, the customer service/accounts teams have been based somewhere in Asia.
Now I'm trying to decide whether to stick with our plans and go for the 2yr @ 1.24% (£216k mortgage) or go for 3yrs @ 1.44%... Either way, paying the fee is currently cheaper than the feesaver products.
Pointless paying a £999 set up fee to save .20% ( nationwide 1.79% I think with fee)
More so for a bank to operate they need stability.
May publicly announced she won't allow freedom of movement which is an integral part of the EU so hard brexit only.
That means maximum uncertainly and massive hits to profits if they don't move at least the passporting chunk into the EU.
It's like if there was a big forecast for blizzards the whole month of December and your annoyed a old person is buying a winter coat, stocking up on food and looking into going on holiday for a good chunk of the month.
The economic impacts were put forward by the remain camp and 'rubbished' as scaremongering. It's too late to complain now. Business is business, they will protect their interests and they said as much before the vote. Dont blame HSBC, blame the 51% that voted for this
http://www.moneysavingexpert.com/mortgages/compare-mortgage-rates
.
For example: a London 3 bedroom flat costs around 750k£, but rent is at most ~30k£. So rent is roughly 4% of the value of the property. The alternative, buy-and-pay-interest costs upkeep (at least 1% p.a.) and interest (1.x% now, but 3% possible). And that doesn't factor in that the value of the property will go down as interest rates go up.
On the other hand, I have little hope that politicians will ever allow house prices to come down.
My experience having gone through this process this week is that I was scrutinised far more this time around than I was 3 years ago.
M_zs advice is very sound.
it's not that long ago rates were 5 or 6
and not that long before that 10 plus !!
I know history shouldn't be used. But
just how long can the rates stay this low.
low rates are becoming normal. but will this be true forever ?
just something to think about.
( disclaimer not financial advise
for up to 60 loan value.
Poor banks.
http://www.coventrybuildingsociety.co.uk/mortgages/AccountSummary.aspx?socseqno=1&prodCode=FGI91&Company=1