3% Mortgage Fixed for 5 Years @ HSBC
55°Expired

3% Mortgage Fixed for 5 Years @ HSBC

35
Found 15th Jul 2012
Am looking to switch mortgages as am paying 5% fixed atm and this deal is cracking. Whenever the Bank of England rate does increase, it won't have an impact on the mortgage for the next 5 years.

- Allows 60% borrowing
- Early repayment charge exists
- £1.5k cost (which can be added to mortgage)

Trackers are 2.64% minimum so for an extra 0.36% you get complete peace of mind for the next 5 years.

(subject to T&C'S, Eligibility Etc)

35 Comments

cold,my tracker is 1.39% with ING.

60 percent loan to value behave most people are lucky to have 20 percent.

biggysmalls

cold,my tracker is 1.39% with ING.



do you understand the difference between fixed for 5 years and a tracker?

Cold, a £1500 booking fee

who to say the rate is going to increase over the next 5 years?

biggysmalls

cold,my tracker is 1.39% with ING.



is it currently available??? NO....

I'm currently on 1,19% so what...

Its hot if you have 40% and require large ammount to justify £1499 fee

There's talk of rates being cut to 0.25 or zero. They would have to be rising pretty swiftly to make this worthwhile for most on trackers, especially with a £1500 fee.

Would be a decent rate for remortgaging to release some cash though, grant you.
Edited by: "nobbyogden" 15th Jul 2012

Original Poster

biggysmalls

cold,my tracker is 1.39% with ING.



But that deal is no longer available... My son owns a property and his is on 0.5+ above base rate. I know of people paying 0.05% below base rate. But alas... these deals are no longer available so please don't compare!

coolcraig999

who to say the rate is going to increase over the next 5 years?



No one... but if they don't, this would be the longest period rates have stayed at 0.5%. You are securing yourself against increases in the cost should the rate increase!

Edited by: "skgwho" 15th Jul 2012

40% deposit.. Not many people have that type of equity at the moment. and 1500 booking fee?
I am on a tracker right now, thank god, and used to pay 650.00, now I am paying something like 500.00 because of the .5%


Saw this offer last week, a great deal. Even if one person gets this offer fantastic.
Good luck. HSBC are good at advertising deal but getting one is another thing. Have a reputation for it.

Banned

£1500 fee that you can add to your loan

TOTAL RIP OFF

BEWARE !!! High Booking fees
Got mine fixed 5 years 3.99 with no booking fee with my bank.
So this deal is a cold one

I Fixed mine with the co-op for five years at 2.39% with a max ltv of 75% last month.

With no booking fee.

kvn618

is it currently available??? NO....I'm currently on 1,19% so what...Its … is it currently available??? NO....I'm currently on 1,19% so what...Its hot if you have 40% and require large ammount to justify £1499 fee

so is it a hot deal for me?

andyc77

60 percent loan to value behave most people are lucky to have 20 percent.



Wrong ....according to the Council of Mortgage Lenders, the average ltv in the UK is less than 60%. Nearly half of existing borrowers have outstanding mortgage debts equivalent to less than 70% of the value of their home.

biggysmalls

so is it a hot deal for me?



Nobody knows what will happen to the BoE base rate over the next 5 years so it's impossible to know if you will lose or gain financially on this offer. But that is not the idea behind going for a fixed rate. What you are paying for is peace of mind. It enables you to budget for those years knowing exactly what your mortgage repayments will be... If you are happy with 3%, there is no reason to be unhappy if someone else is on a better rate. And if the economy starts to recover and rates do start to increase (i'm old enough to remember it being 15%, never mind 0.5%) you'll be shielded until mid 2017.

ckeekychimp

BEWARE !!! High Booking fees Got mine fixed 5 years 3.99 with no … BEWARE !!! High Booking fees Got mine fixed 5 years 3.99 with no booking fee with my bank.So this deal is a cold one



So assuming an interest only mortgage of £100,000 for simplicity over the 5 years of the deal you will pay £19,950 of interest but happy days - no booking fee so total cost £19,950.

Some muppet taking the HSBC deal will pay £14,950 of interest and the schmuck will have paid a £1,499 fee giving a total cost of £16,449.

Maths not your forte?!

Let's get a few points straight to hopefully stop a lot of to and fro:

60% LTV as a maximum - Of course not everyone has 40% deposit or equity in their property. The fact is that on a property with a low LTV HSBC have lower risk to the extent they can offer a low rate. If they had the deal at 70% LTV it would cost more. You can get a more expensive 70%, 80% etc deal elsewhere but HSBC is offering this deal as an additional product in the market place which is no bad thing. It's not being forced down anyone's throat.

£1,499 booking fee - There is very little point in ruling out the deal because the fee is high. The best way to compare is to look at the total cost over 5 years compared to other comparable and available deals. Most 2 year deals have a fee of £600-£1000 so if you look at the pro rata fee of £300/yr on this one, it's not abnormal. This deal is a stonker even given the 'high' fee.

Trackers are cheaper - Yes, some trackers are cheaper however they are not a comparable product. We may have opinions about what will happen to rates but the fact is that a fixed rate guarantees your mortgage payment whereas a tracker does not. A tracker and a fixed rate will cost different amounts and should not be compared as like for like.

I have a cheaper mortgage - A lot of people will have been able to secure better tracker rates in the past (although I doubt better fixed rates). Like with a lot of deals on this website, a better deal may have been available for the product in the past. This site is about looking at the best deal currently available.

Hope the above help someone.
Edited by: "mission701" 15th Jul 2012

ckeekychimp

BEWARE !!! High Booking fees Got mine fixed 5 years 3.99 with no … BEWARE !!! High Booking fees Got mine fixed 5 years 3.99 with no booking fee with my bank.So this deal is a cold one


HSBC also do a 5yr deal at 3.49% with no booking fees.

TheTaylors

I Fixed mine with the co-op for five years at 2.39% with a max ltv of 75% … I Fixed mine with the co-op for five years at 2.39% with a max ltv of 75% last month.



I'm not sure if you're trolling or not, so can you tell us how you got that rate?

Being with the Co-op I've been watching their rates like a hawk ever since they put their SVR up to 4.7%
I'm pretty sure that I've never seen anything close to that rate advertised in the last 2 months.

1500 pounds, what a rip off

biggysmalls

cold,my tracker is 1.39% with ING.

coolcraig999

who to say the rate is going to increase over the next 5 years?


Just because the B of E rates go down doesn't always mean the mortgage rate will also.
The banks are desperately trying to make money (fill their coffers) and logically the only way they can do this is to give rubbish interest rates on savings and raise mortgage rates .
If anybody knows of any other way please let them know.
So in response , yes i think the mortgage rates will rise even if base rate falls another quarter percent.
Pete

Looks like a good rate if you want security for 5 years, but HSBC are very picky over who they lend to

BigAde

I'm not sure if you're trolling or not, so can you tell us how you got … I'm not sure if you're trolling or not, so can you tell us how you got that rate?Being with the Co-op I've been watching their rates like a hawk ever since they put their SVR up to 4.7%I'm pretty sure that I've never seen anything close to that rate advertised in the last 2 months.



I'll 2nd that. Cheapest I can see at a glance is 4.59% for 5 years @ 75%
co-operativebank.co.uk/ser…xed

Original Poster

s1m0nc

I'll 2nd that. Cheapest I can see at a glance is 4.59% for 5 years @ … I'll 2nd that. Cheapest I can see at a glance is 4.59% for 5 years @ 75%http://www.co-operativebank.co.uk/servlet/Satellite/1193206376309,CFSweb/Page/Bank-Mortgages?product=2yearfixed#5yr



And I will third that... There is no way you got a fixed LTV of 75% at 2.39 FIXED.

Co-Op haven't had a rate lower than 3.39%... I have looked at the rate which they matched YBS for.

The high fee makes it a loser before even looking at the rates

peterdarlison

Just because the B of E rates go down doesn't always mean the mortgage … Just because the B of E rates go down doesn't always mean the mortgage rate will also.The banks are desperately trying to make money (fill their coffers) and logically the only way they can do this is to give rubbish interest rates on savings and raise mortgage rates .If anybody knows of any other way please let them know.So in response , yes i think the mortgage rates will rise even if base rate falls another quarter percent.Pete



I think you're confusing Standard Variable Rates (Banks decide what they charge) with Tracker Rates (which are tied to the BOE base rate)

freebiehunter

The high fee makes it a loser before even looking at the rates



That's like saying a Ryanair booking fee makes any Ryanair deal a bad one before looking at the cost of the flight. With Ryanair you take in to account the cost of the flight plus all the fees. There is nothing different about looking at the cost of a mortgage.

freebiehunter

The high fee makes it a loser before even looking at the rates



The 3% fixed with £1500 fee is the best of the 5 year fixes they do, if you took the time to do the math you'd know that. In your defence however; There is no justification in having any fees whatsoever. Why don't they simplify things and just factor in the extra "fee" into the interest? It would make it a damn site easier to compare the best rates they have to offer would it not? Oh....wait a minute....

P.s. When the £1500 fee has been factored into the equation, you are looking at an interest rate in the region of 3.37% during that 5 year fixed period.

P.p.s. You may want to double check my figures - my math was never that great!


Edited by: "hotdog" 15th Jul 2012

hotdog

P.s. When the £1500 fee has been factored into the equation, you are … P.s. When the £1500 fee has been factored into the equation, you are looking at an interest rate in the region of 3.37% during that 5 year fixed period.



Well that depends on the size of the loan.

mission701

Well that depends on the size of the loan.



Please refer to aforementioned "P.p.s." lol.

Couldn't care less about the fee- as shown previously even with it this is a lot cheaper than most mortgages out there at the moment. Just wish I was in a position to take advantage of it

hotdog

I think you're confusing Standard Variable Rates (Banks decide what they … I think you're confusing Standard Variable Rates (Banks decide what they charge) with Tracker Rates (which are tied to the BOE base rate)


Without getting technical which we don't have to be, i have been living a long while and whilst or whether this is or not a good rate depends on how you forecast the future.
Now unless you are a lot older than myself you will realize nothing follows a pattern . ( did you forecast a recession too ? lol) no i thought not.
It never amazes me the young people that know everything lol without having a dig at all young people im not but maybe if you listened a little more rather than talking Bull***it you may learn a little. And this includes our glorious ministers in power.
This has all happened before in history but im afraid the egos of those that rule are too big to listen too.
Please don't respond to this anyone as it only shows how easily you are agitated by your lack of knowledge

Wow, that is such contemptible horse manure you nearly got away with it.

Tell me Pete, which is it to be? 'This has all happened before' or 'nothing follows a pattern'.

Because you're contradicting yourself old timer and you haven't even addressed the point made.
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