HSBC Fee-Free Tracker Mortgage. 1.79% + base - HotUKDeals
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HSBC Fee-Free Tracker Mortgage. 1.79% + base

adwils Avatar
5y, 10m agoFound 5 years, 10 months ago
Range of interest rates depending on LTV. 60% is cheapest
BUT no ERC nor Exit Charges
Unlimited no charge overpayments, including lump sum.
Includes 1 standard valuation for free.

Knowing HSBC there is probably some catch, but worth checking out if you need to re-mortgage


Its re-mortgage so you need 40% equity in house. eg if you house is worth £100k you could borrow upto £60k at 2.29%. Most trackers come with high penalties if you want to get out, but this seems charge free.

You could find a building society paying a better instant access rate and make out of it.
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#1
but where to bring the 40% down payment to get that rate :)
#2
capricornianz
but where to bring the 40% down payment to get that rate :)

Its re-mortgage so you need 40% equity in house.

Try 125% mortgage with Norther Rock like the good old days.

Edited By: adwils on Jan 11, 2011 15:46
#3
had a look and it seems good to me?
banned#4
fantastic deal if truly no booking fee and no exit penalties. Low interest rates forecast for the year so looks great to me.
1 Like #5
still on my old tracker of base +0.49 - so glad I did that when I did.

not a qualified advisor, but trackers are good when you think the base rate will move up and down alot - or preferably only down.
Given the base is so low at the moment its not likely to go down - only up so perhaps a low fixed term mortgage sounds a better punt. There's some good deals out there
#6
Seems a good deal, I changed my mortgage in October via a previous HSBC offer (base + 1.69% with a £99 booking fee). Previous rate was 2.95%.
#7
This is a good deal, thanks OP.
3 Likes #8
on a .23% above base at the mo, trouble is I've got very used to it and it's going to hit us hard when they go up!
#9
This shows up for a FTB too. Looks interesting but only had a quick glance.
#10
Thi for current HSBC mortgage customers too I wonder?
banned#11
wozwebs
Thi for current HSBC mortgage customers too I wonder?

yes
1 Like #12
Cold. We tried the other day, had appointment took all our details as asked, we have a MTV ratio less than 60% a huge dep. We were basically told to sod off after spending over an hour with an incompetent member of staff. If it sounds to good to be true it usualy is. They wouldn't even lend 1.75 times my salary. Rant over :p
#13
"Low interest rates forecast for the year so looks great to me"

Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.
#14
They will lend 4.5 times salary. I applied for this 2 days ago.
#15
good deal
1 Like #16
Painterz1
"Low interest rates forecast for the year so looks great to me"

Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.


Where did you hear that? Sounds even more ridiculous. The actual comments were that rates would eventually normalise to 5%, nothing about it being within a year, it'd take a 0.5% jump in almost every MPC meeting this year to acheive it. When instead the Reuters consensus poll said rates might start to hit 0.75% between Oct and Dec with further rises over the following year.

Hand on heart do you think the rates will be 5% after the December meeting of the MPC?
#17
Painterz1
"Low interest rates forecast for the year so looks great to me"

Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.


Oh the irony, you ask where they heard one thing and then say that you heard something different but didn't say where YOU heard it from.
banned#18
happy donkey
Cold. We tried the other day, had appointment took all our details as asked, we have a MTV ratio less than 60% a huge dep. We were basically told to sod off after spending over an hour with an incompetent member of staff. If it sounds to good to be true it usualy is. They wouldn't even lend 1.75 times my salary. Rant over :p

obviously depends on many variables aside from deposit. Guessing your job / credit history isnt all that secure.

Edited By: csiman on Jan 12, 2011 13:05
#19
This is a good deal for those that can....
banned 1 Like #20
Painterz1
"Low interest rates forecast for the year so looks great to me"

Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.

you heard wrong or just one economist:-

Rates are set to rise to 1% in the first quarter of 2012 (January to March) and then to 1.5% in the second (April to June).

Just seven of 60 economists see a rate rise before June giving a 30% median probability of a hike by then. Last month, they gave it a collective 25% chance of a rise before June.

Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=520903&in_page_id=2#ixzz1ApHdozcJ
#21
alanino64
still on my old tracker of base +0.49 - so glad I did that when I did.not a qualified advisor, but trackers are good when you think the base rate will move up and down alot - or preferably only down.Given the base is so low at the moment its not likely to go down - only up so perhaps a low fixed term mortgage sounds a better punt. There's some good deals out there

Do you have any details of these low fixed terms deals please?
#22
grwill67
Seems a good deal, I changed my mortgage in October via a previous HSBC offer (base + 1.69% with a £99 booking fee). Previous rate was 2.95%.

Mine has just gone through paying 2.19 % was happy as Larry with this deal only cost 99 quid to set up do me for now .............
#23
we have just remortgaged to this deal, its the best around at the moment, was on 0.99% above base rate with halifax so have had a good couple of cheap years. all done over phone, had to sign documents and send back to hsbc and their solicitors.
1 Like #24
Painterz1
"Low interest rates forecast for the year so looks great to me"Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.

Use some common sense. Rates are not going to raise by anywhere near that amount.
#25
grwill67
Seems a good deal, I changed my mortgage in October via a previous HSBC offer (base + 1.69% with a £99 booking fee). Previous rate was 2.95%.


That's the same one I took out. Due to complete on Friday on the house!
#26
Does anyone know what other fees are payable over the "standard valuation" fee (which costs how much?) i.e. legal fees?

Edited By: jazid on Jan 12, 2011 13:54
#27
If rates rise to 5% repossesions will rise 1000%
The only thing keeping the economy afloat is the low interest rate.
Far more businesses and borrowers will suffer than any people with savings left and the only winners again would be the banks.
On the subject of the deal it is a good deal.
Hot
#28
jazid
Does anyone know what other fees are payable over the £99, i.e. legal fees?


Think it was £265 for the required valuation survey (can't do a 3rd party one, well you can but you still require HSBC's own approved survey), a £30 completion fee (on draw down).

The rest is down to what solicitor you choose.

Edited By: Chick21 on Jan 12, 2011 14:18: legal fees
#29
My current mortgage has dropped over to standard variable at the moment. I haven't looked around as the setup fees outweigh the saving. Quick check on the sums with this and I could be saving £90 per month.

Need to look into it a bit further.
#30
I think my rate of 0.19% + base for the term of the mortgage - which had zero set up fee - is the best deal so far . On my 120k mortgage - my annual interest is abot £800
#31
How long do hsbc take to give a decision if the application is succesful?
#32
adams123413
I think my rate of 0.19% + base for the term of the mortgage - which had zero set up fee - is the best deal so far . On my 120k mortgage - my annual interest is abot £800

Thanks for sharing that with us oO
#33
Painterz1
Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.

I thought your snort of derision was a little bit harsh, but as I cannot hear myself think because of the din of laughter rolling around this forum at your own quite silly comment about interest rates being 5% by the end of the year I suppose it is enough said. What goes around comes around. Perhaps if you had not been so harsh you may not have quite got the backlash you did.

I was fortunate to pick up a base + .49% with the Woolwich on a £225K mortgage with no penalties just before the crash and I have been trying to help friends find decent deals ever since. ( I am fortunate that I have 65% equity as well) However this seems to be the cheapest deal around at the moment and as "it is unlikely" that interest rates will rise by much in the next 12 months at least then this is a very good deal. You can even pick up some returns on investments that are higher than this, so it does not even pay to do any lump sum repayments, invest it and get a better return.

As all rates are set to rise over the longer term you will be hard pushed to find anyone prepared to go fixed rate over any length of time at a reasonable rate for a few years at least so best to stick with a base+ rate.

However as one person has already pointed out lending criteria are now far more strict and less people will be able to get this than before. Now if only business rates were this good...... LOL.

Edited By: Hatchorder on Jan 12, 2011 15:33: spelink!
#34
[/quote]

Do you have any details of these low fixed terms deals please?[/quote]

First Direct will do a five year fix at 3.89% with just a booking fee of £99. No valuation or solicitors fees. This looks better long term in my opinion. I expect rates to move slightly up this year and then more over the following couple of years. Not likely to leap up, despite inflation needing it to, as it would be political suicide with all the other job cuts and tax rises. I haven't checked the deposit required for First Direct, but it's likely to be 30% or more, similar to this HSBC offer.

The HSBC offer seems to be only for those on a decent income. I was looking to re-mortgage and have a 93% deposit and a perfect credit record, but a low income. When I checked they wouldn't lend at all on this rate with an income much under £30000. I wasn't able to borrow £33000 with an income of £20000, despite having no other debts. First Direct lend around 3.5X, depending upon circumstances.
#35
nordicgod
we have just remortgaged to this deal, its the best around at the moment, was on 0.99% above base rate with halifax so have had a good couple of cheap years. all done over phone, had to sign documents and send back to hsbc and their solicitors.

We took this deal also in October, it was so much better than what we had with the Nationwide.
The reason being for these deals is that historically HSBC is not a big player in the mortgage market in the U.K. This is there attempt to tackle the traditional big lenders.

As far as Valuation fees go, The standard free one offered is basically a postcode search on the web, to see the valuation of houses in your area (don't see how it works, as all houses are different (extensions, styles etc.)) If your near the figures then they will do a more in depth valuation, where they will send someone to have a look. So it is really down to circumstances and LTV value that will decide if you qualify.
Best move we have made for a while.
With regards to talk of future rates, you have to accept that they are going to rise, as to how much and how often is anyones guess, but compared to my last deal it will take a while for me to lose out.
Don't forget you can make unlimited overpayments, if the deal is still exactly the same, i know it has varied slightly and been revised a few times.
We had trouble getting the staff in branch to find this deal, but i had printed it and the product code off the HSBC website. So it may be worth doing your homework.
#36
merlinthehappypig
Do you have any details of these low fixed terms deals please?[/quote]First Direct will do a five year fix at 3.89% with just a booking fee of £99. No valuation or solicitors fees. This looks better long term in my opinion. I expect rates to move slightly up this year and then more over the following couple of years. Not likely to leap up, despite inflation needing it to, as it would be political suicide with all the other job cuts and tax rises. I haven't checked the deposit required for First Direct, but it's likely to be 30% or more, similar to this HSBC offer.The HSBC offer seems to be only for those on a decent income. I was looking to re-mortgage and have a 93% deposit and a perfect credit record, but a low income. When I checked they wouldn't lend at all on this rate with an income much under £30000. I wasn't able to borrow £33000 with an income of £20000, despite having no other debts. First Direct lend around 3.5X, depending upon circumstances.[/quote]
Agreed, if you go to their "how much can I borrow" tab, then with an income of 45k, house value of £420k with 9 yrs left on existing mortgage and no other debts, the best they'll lend me is £69k, which is an LTV of 17% - WTF? i've heard of playing it safe but thats taking the p*ss! My current mortgage is £103k.
#37
Painterz1
"Low interest rates forecast for the year so looks great to me"Where did you hear that? I heard that given inflation is running well above governments maximum target of 3.3%, and that inflation is likely to accelerate over the next few months, that raises in the interest rate are inevitable. And likely to be at least 5% by the end of the year.

Nonsense. Rates will stay low for another 2 years minimum. Even the worst predictions for this year are only 2.5 (apart from yours) ;-)
#38
ramtec
on a .23% above base at the mo, trouble is I've got very used to it and it's going to hit us hard when they go up!

Am in a similar boat at .69% above base rate. Most would say it's a nice problem to have! Best thing is to overpay the monthly amount by as much as you can afford now while things are good - you'll get used to paying that amount and when they go up you can reduce the overpayments to keep it at the same level and won't notice the difference!

Edited By: bulletproof_1979 on Jan 12, 2011 16:35
#39
gold682
Agreed, if you go to their "how much can I borrow" tab, then with an income of 45k, house value of £420k with 9 yrs left on existing mortgage and no other debts, the best they'll lend me is £69k, which is an LTV of 17% - WTF? i've heard of playing it safe but thats taking the p*ss! My current mortgage is £103k.

That does seem ridiculous - I wonder if it's the repayment period of 9 years being too short for them? Just a thought...
#40
adams123413
I think my rate of 0.19% + base for the term of the mortgage - which had zero set up fee - is the best deal so far . On my 120k mortgage - my annual interest is abot £800

and I though I was doing well at base + 0.89 for the full term of 89k left to pay (also zero fee) took out in June 09 (or was it 08, 2 months before they slashed rates down to 0.5% anyway)

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