The Hanley Economic Building Society Deals & Sales for 2016 - HotUKDeals
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The Hanley Economic Building Society Deals & Discounts

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the hanley economic building society 1.99% 80% LTA FIXED for 2 years fee free

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looking for a remortgage deal and found this good fixed 1.99% fee free over 2 years LTA 80%. They also offer same 1.89% discount not fixed. Shared Via The HUKD App For Android.
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Anyone know any good BTL products for Student properties?
OrangeAgent
what does HSBC pay interest on £50K tho?

As close to a market beating 0% percent interest as possible!

More seriously, yes you could put £20,000 in a santander 123 account and get 3% AER minus £24 a year for account fee. Put the other £30,000 into Coventry Building Society at 1.4% AER and be 'better off' by £496.80 P.A (With BR Tax deducted) than having it with a HSBC Online bonus account. (I have only used instant access accounts in the examples [see sources] at the bottom)

But, if you have lots of money and little to no income (retired, redundancy, inheritance, etc), your choices for BTL mortgages are more limited to a handful of lenders.

So if you wanted to buy a BTL (with no personal income requirements) for £180000 at 75% LTV you would be looking at:

TMW 75% 2 Year Fixed £1995 Fee @ 3.64% = £409.50 Interest Payable Per Month
HSBC Premier 75% 2 Year Fixed £1999 Fee @ 2.79 = 313.87 Interest Payable Per Month

So with the HSBC Premier Mortgage (that has no personal income requirements) you would be £1147.56 P.A Better off than with TMW's BTL Mortgage.

But If you had your money with Santander & Coventry BS you would have to take TMW mortgage where you would be £1147.56 worse off that HSBC Mortgage but £496.80 Better off with your £50k savings not with HSBC.

So actually having your £50k with HSBC makes you £647.56 better off if you are taking out a BTL Mortgage. Not to mention HSBC has some nice free perks (and a bit of status - if you're into that kind of thing)

Hope that makes sense.





Sources

£20k in Santander (£20000*0.03)-£24 = £576
£30k in Coventry BS (£30000*0.014) = £420
Total Interest on £50k P.A.
Without interest deducted = £996 (Effective rate of 1.99% interest P.A)
With Basic rate interest deducted = £796.80 (Effective rate of 1.59% interest P.A)
With Higher rate interest deducted = £597.60 (Effective rate of 1.20% interest P.A)

£50k In HSBC Online Bonus Saver at 0.75%
Total Interest on £50k P.A.
Without interest deducted = £375 (Effective rate of 0.75% interest P.A)
With Basic rate interest deducted = £300 (Effective rate of 0.6% interest P.A)
With Higher rate interest deducted = £225 (Effective rate of 0.45% interest P.A)





Edited By: jambone on Mar 17, 2015 22:16
what does HSBC pay interest on £50K tho?
buglawton
When I last looked, for BTL, HSBC expected your income to be above £50,000 PA, exceptionally demanding. HSBC want blue chip borrowers that present them zero risk. Wasn't the old saying that they'll only lend you it if you don't need it?

I agree that it is very demanding, especially if you make your "income" from BTL's, however if you have more than £50,000 in savings either in an account with HSBC or spread across an account and other investment products with them you, qualify for their premier account. Once you have a premier account, you get better mortgage rates and they wave any income requirements for BTL mortgages so that it's base purely on rent.

I know it doesn't suite everyone - but great for investors with lots of money and little to no income (retired, redundancy, inheritance, etc).

Edited By: jambone on Mar 17, 2015 22:18: edit
anyone know if you want to move once you got one like this, what costs are there to move then?
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