10 year fee-free fixed mortgage 2.64% - 65% LTV - HotUKDeals
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10 year fee-free fixed mortgage 2.64% - 65% LTV

£0.00 @ HSBC
HSBC had, and still has, a deal for 10 year fixed rate fee-saver mortgages at 70% LTV for 2.79% (see link below): http://www.hotukdeals.com/deals/10-year-fixed-rate-mortgage-2-79-max-ltv-70-0-booki… Read More
marathonic Avatar
8m, 5d agoFound 8 months, 5 days ago
HSBC had, and still has, a deal for 10 year fixed rate fee-saver mortgages at 70% LTV for 2.79% (see link below):

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)
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(2)
11 Likes
koolishy67
intrest rate going down again not point to fix

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.
6 Likes
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

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#1
very good deal if you are in the right situation!!! unfortunately i dont quite have enough equity in my house :-(
6 Likes #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
#3
delusion
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

With what fee?
1 Like #4
dbailey10
delusion
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
With what fee?

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

Edited By: delusion on Sep 16, 2016 15:29: Erc in OP was removed, see posts below
#5
delusion
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

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.


Edited By: Franken on Sep 16, 2016 10:57
#6
Please note that this is not for new customers..

I'll get my coat..

Edited By: firstofficer on Sep 16, 2016 13:29
#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.

Edited By: simont_space on Sep 16, 2016 13:50
#8
firstofficer
Please note that this is not for new customers..
I'll get my coat..

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?
3 Likes #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.
3 Likes #10
paypeanuts
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.


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.
#11
only tracker
11 Likes #12
koolishy67
intrest rate going down again not point to fix

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.
#13
marathonic
firstofficer
Please note that this is not for new customers..
I'll get my coat..
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?

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..

Edited By: firstofficer on Sep 16, 2016 14:49
#14
firstofficer
marathonic
firstofficer
Please note that this is not for new customers..
I'll get my coat..
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?
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..

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.

Edited By: marathonic on Sep 16, 2016 14:57
#15
delusion
dbailey10
delusion
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
With what fee?
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 5k for every 100 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


on their website it says early repayment charge is 1%

https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004046025000000000000000000
2 Likes #16
ran123ran
delusion
dbailey10
delusion
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
With what fee?
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 5k for every 100 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
on their website it says early repayment charge is 1%https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004046025000000000000000000

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.
#17
ran123ran
delusion
dbailey10
delusion
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
With what fee?
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 5k for every 100 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
on their website it says early repayment charge is 1%https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004046025000000000000000000

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
#18
delusion
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

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
#19
benjai
delusion
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
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

Prob cos he/she has a Santander 123 current account (which gives 1% cashback on Santander mortgages I believe)
#20
benjai
delusion
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
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

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.

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'

Edited By: delusion on Sep 16, 2016 15:52: ..
#21
Pity HSBC don't like to give mortgages to couples where one of them is Non-EU citizen

Edited By: Rudess on Sep 16, 2016 15:47
#22
benjai
delusion
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
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

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.

Your text here
1 Like #23
delusion
benjai
delusion
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
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
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. http://www.santander.co.uk/uk/current-accounts/123-current-account?gclid=Cj0KEQjwsO6-BRDRy8bsxfiV2bkBEiQAF8EzKAWnWT4P7rpQSn9LRK7IaPQiNTLLjNNphJn60smzw2QaAvnz8P8HAQ
Click on 'full details'

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!
#24
Rudess
Pity HSBC don't like to give mortgages to couples where one of them is Non-EU citizen

wow! I never knew that was a problem. How did you get around that, went with another mortgage company?
#25
What about if you are not having HSBC Bank account and two years self employed tax returns? :(
#26
dannyb182
very good deal if you are in the right situation!!! unfortunately i dont quite have enough equity in my house :-(
I prefer to buy on Cash than paying all equity of your house to Bank... :)
3 Likes #27
steph350
dannyb182
very good deal if you are in the right situation!!! unfortunately i dont quite have enough equity in my house :-(
I prefer to buy on Cash than paying all equity of your house to Bank... :)


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
#28
HSBC are a waste of time..........they offer good rates and then make it so difficult to get a mortgage.
#29
steph350
dannyb182
very good deal if you are in the right situation!!! unfortunately i dont quite have enough equity in my house :-(
I prefer to buy on Cash than paying all equity of your house to Bank... :)

If you buy me a house I promise to like your comment
1 Like #30
Rudess
Pity HSBC don't like to give mortgages to couples where one of them is Non-EU citizen


they must have a reason
2 Likes #31
Howdie
HSBC are a waste of time..........they offer good rates and then make it so difficult to get a mortgage.


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.
3 Likes #32
Fairly good indication of the long term outlook if banks are offering rates as low as 2.64% fixed for 10 years!
#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.
1 Like #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.
#35
Doesn't sound so positive! Any other opinions on hsbc?
3 Likes #36
Franken
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.
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.
#37
Most let you port your mortgage though with no
Fee? Would also consider the £1000 cash back from Halifax and slightly higher rate.
#38
HSBC have a tough application process
#39
First Direct is also hard to get to mortgage with, HSBC is its parent company , so that explains this
#40
simont_space
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.


A decision in principle is a soft search and leaves no record on your credit file

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