Seeing as most people seemed to appreciate the First Direct deal, why not save an extra 0.1%? The 5 year fixed seems like a great option as it balances a cheap interest rate with a long term fixed %.
Fee-saver, just like the First Direct so no upfront fees are payable!
HSBC should be easier to get approval compared to First Direct also.
All comments (60)
1616french
7 Aug 17#1
I'll give this a try tomorrow
Fact_or_Fiction
7 Aug 17#2
My view would be to look at a 5 year deal as minimum going forward, The rates can only go up now people...Nothing left to drop. The next 2 years is a Gamble, My money's on Fixed for 5 or 10 years...Other than that its a good deal, so have some heat. :skull_crossbones:
AlfieW123 to Fact_or_Fiction
7 Aug 17#3
I must admit I thought the other way, I thought although they may not drop any further, I cant see them going up anytime soon! And the banks must think this too, as ultimately they are only offering long term fixes at a rate that they will make a profit on? I got a 2 year fixed mortgage from HSBC and I plan to keep renewing it every 2 years for the super low interest rate :laughing:
Fact_or_Fiction to AlfieW123
7 Aug 17#19
Well, like i said it's a gamble, I would not trust the banks on knowing much more than any normal Jo public, after all, the reason for the low rates is due to the banks in my view getting it wrong in the first place. The banks are risking nothing if you look at the deal above. 60%LTV. the bank of England rate are 0.25%, They have a cushion of 1.25% and if the worse case scenario is that they go up fast...well they have your house with another 40% cushion....i would rather sit on a 5 or 10 year deal circa 2.5% max rate, in the knowing its affordable. 2 years for me is not long enough with the many unknowns currently looming with Brexit...Each to your own....hope it all goes well for you! :thumbsup:
morgie to Fact_or_Fiction
7 Aug 17#26
I thought the same in 2014 :angry:
They have a 0.99% 2 yr tracker at 60% LTV. It does have a £999 booking fee. It would take just under 4 x 0.25% interest rate rises within the 2yrs to become 'worse' than the 1.89% 5yr fix. It's worth anyone modelling their repayments against that. Also unlimited over payments allowed compared to 10% of the remaining balance on a fix (but realise this isn't a problem most of us have!).
pontiacy
7 Aug 17#4
My mortgage advisor told me that I needed to pay extra fee (>200) because my solicitor was not on their panel. And there were other hassles too.
hillcraig87
7 Aug 17#5
r/humblebrag
r2mahara
7 Aug 17#6
You could consider the first direct fixes - they allow unlimited overpayments
Billythebubble to r2mahara
8 Aug 17#52
So do HSBC up to 10% each month I believe
morgie to Billythebubble
8 Aug 17#54
It's 10% of the balance at the start of the mortgage year if on an HSBC fixed mortgage. This over payment allowance is made clear online.
On the variable rate it's unlimited over payments.
Tonic84
7 Aug 17#7
I've just switched to HSBC and in order to get the fee free deal, had to use their appointed solicitors. They were absolutely terrible, got things wrong, were incredibly slow and their communications often contradictory or issued weeks late.
Saying that, because I started the process early - I did manage to complete before my existing deal ended. However I would rather have paid a couple of hundred extra for a better solicitor.
othen to Tonic84
7 Aug 17#22
Most solicitors are like that, even the ones you pay for yourself. Conveyancing is not very lucrative so it is not worth a solicitor investing much of a clerk's time in it. I'm not sure a few hundred more would have achieved a much better result.
GMac11
7 Aug 17#8
The 3 and 5 year look very good. I am currently on a 1.39% baseline tracker (1.89% all in) with HSBC and those fixed rates are very enticing. Problem is I sort of plan to move in the next 2 to 3 years so a 2 year would be the most sensible deal, not sure if it's worth the hassle though.
messiahcomplex8
7 Aug 17#9
Out of interest, total mortgage n00b here, but if this is good, would I bother going via a mortgage broker? Or just go to HSBC
kawa1981 to messiahcomplex8
8 Aug 17#47
I went to HSBC for a mortgage i could easily afford and they wanted all sorts of paperwork (lease paperwork) and declined me in the end with no reason even tho i was one and a half times within the affordibility. Myself and most of the people i know use nationwide - decent rates and no mortgage broker, all done instore
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Opening post
Seeing as most people seemed to appreciate the First Direct deal, why not save an extra 0.1%? The 5 year fixed seems like a great option as it balances a cheap interest rate with a long term fixed %.
Fee-saver, just like the First Direct so no upfront fees are payable!
HSBC should be easier to get approval compared to First Direct also.
All comments (60)
They have a 0.99% 2 yr tracker at 60% LTV. It does have a £999 booking fee. It would take just under 4 x 0.25% interest rate rises within the 2yrs to become 'worse' than the 1.89% 5yr fix. It's worth anyone modelling their repayments against that. Also unlimited over payments allowed compared to 10% of the remaining balance on a fix (but realise this isn't a problem most of us have!).
On the variable rate it's unlimited over payments.
Saying that, because I started the process early - I did manage to complete before my existing deal ended. However I would rather have paid a couple of hundred extra for a better solicitor.