5 Year Fixed Rate Mortgage @ 2.19%, Max LTV 60% £499 Booking Fee @ HSBC
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5 Year Fixed Rate Mortgage @ 2.19%, Max LTV 60% £499 Booking Fee @ HSBC

101
Found 2nd Oct 2015
5 Year Fixed Premier and Advance Standard @ 2.19%,
Max LTV 60%
£499 Booking Fee
for Premier and Advance Customer Onlys (otherwise £999 Booking fee)

This deal got hot two months ago when it was even higher at 2.39%, so I thought it might be worth reposting with updated conditions
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101 Comments
Good deal if you can get it. SUBJECT TO VALUATION
I just locked in at 60% Ltv at 1.99 for three years.
Please someone can advise if i can apply this deal as i have 32% Loan To Value (LTV)
cracking deal
andykapa

Please someone can advise if i can apply this deal as i have 32% Loan To … Please someone can advise if i can apply this deal as i have 32% Loan To Value (LTV)


Do you mean 32%, or 68%? The LTV rate is the amount you want to borrow (i.e. 95% LTV is a 5% deposit.) If you're right and you really do have 68% deposit... Then well done you!

Back to your original question, you'd need a 40% deposit to take advantage of this rate.

Edit: I'll caveat this by saying I'm a first time buyer who's relying on what I've read online and been told by estate agents/brokers, I'm happy to be corrected by those who know more.
Edited by: "Magoo_222" 2nd Oct 2015
Magoo_222

Do you mean 32%, or 68%? The LTV rate is the amount you want to borrow … Do you mean 32%, or 68%? The LTV rate is the amount you want to borrow (i.e. 95% LTV is a 5% deposit.) If you're right and you really do have 68% deposit... Then well done you! :pBack to your original question, you'd need a 40% deposit to take advantage of this rate. Edit: I'll caveat this by saying I'm a first time buyer who's relying on what I've read online and been told by estate agents/brokers, I'm happy to be corrected by those who know more.



LTV is the level of debt compared to the value of the property, not deposit. If the house was worth £100k and the mortgage was £60k then the LTV would be 60%, if you were buying the £100k house and had a £5k deposit then the LTV would be £95k assuming the mortgage valuation supported the £100k purchase price
95% not £95k I mean
Keen to see what other comparable deals are out there by other high street banks.
Direct valuations, the one they use will value your home less then a proper valuer. Just be careful. Fight with them if they do
Longandstrong

Direct valuations, the one they use will value your home less then a … Direct valuations, the one they use will value your home less then a proper valuer. Just be careful. Fight with them if they do


Didn't happen with us. Agreed with me and my knowledge of local market rather than the HSBC computer
hortontrotts

LTV is the level of debt compared to the value of the property, not … LTV is the level of debt compared to the value of the property, not deposit. If the house was worth £100k and the mortgage was £60k then the LTV would be 60%, if you were buying the £100k house and had a £5k deposit then the LTV would be £95k assuming the mortgage valuation supported the £100k purchase price


That's what I said... I think?
Sorry but HSBC are SCUM do not deal with them
If I was looking to buy a house for £80k which was valued at £130k would I require a deposit?
red23

Sorry but HSBC are SCUM do not deal with them



Been banking with them for past 12+ years, they're the best bank IMO and I've used a lot of their products and services.
HSBC are great, best bank I've ever dealt with, great deal, hot
We locked into this deal back in July when it was available. HSBC were really good to deal with to be honest, especially compared to our last mortgage with Santander who were awful when we were setting it up.
HOT.

I have 3 mortgages with HSBC, use loads of other services including Premier, commercial and private banking. Best and safest place of all the high street ones...

Great rate!
andynicol

If I was looking to buy a house for £80k which was valued at £130k would I … If I was looking to buy a house for £80k which was valued at £130k would I require a deposit?



​Do you have £80k? If so, then no...
Anyone worked this out yet? .... An early repayment charge applies to this mortgage until 31.12.20. The ERC is calculated as undefined of the amount repaid early, above any annual overpayment allowance, for each remaining year of the period during which the ERC applies, reducing on a daily basis
HSBC obviously don't expect any BofE rate increases of any significance in the mid term future. I'm hearing as many reports of likely further cuts in the rate as I am increases. Like a couple of others above, I have banked with HSBC for a long time with no problems and also have a tracker mortgage with them that was pain free to set up
andynicol

If I was looking to buy a house for £80k which was valued at £130k would I … If I was looking to buy a house for £80k which was valued at £130k would I require a deposit?



Yes. Because its value is £80k into effect. The lender will require a percentage deposit against the purchase price or valuation, whichever is the lower.
andynicol

If I was looking to buy a house for £80k which was valued at £130k would I … If I was looking to buy a house for £80k which was valued at £130k would I require a deposit?



Even if you were buying the house for £130k your loan could be no more than £78k.
pauldh

HSBC obviously don't expect any BofE rate increases of any significance … HSBC obviously don't expect any BofE rate increases of any significance in the mid term future. I'm hearing as many reports of likely further cuts in the rate as I am increases. Like a couple of others above, I have banked with HSBC for a long time with no problems and also have a tracker mortgage with them that was pain free to set up



I also agree. It is unlikely that the rate may go up. In that case it would be short term fixed rate mortgage than 5 year. I am banking with HSBC for several years and their service is good so far.
happydeals

I also agree. It is unlikely that the rate may go up. In that case it … I also agree. It is unlikely that the rate may go up. In that case it would be better to go for short term fixed rate mortgage than 5 year. I am banking with HSBC for several years and their service is good so far.

Richief

Even if you were buying the house for £130k your loan could be no more … Even if you were buying the house for £130k your loan could be no more than £78k.



Is that going by the 60% max ltv on this offer?

IF I found a lender who offered a higher ltv, as a general rule if I bought a property for £80k that was valued at £130k would I need a deposit?
i.e. does any equity in a property count towards a deposit as such, or would I need say 5% deposit of the £80k?

Great deal!
andynicol

Is that going by the 60% max ltv on this offer?IF I found a lender who … Is that going by the 60% max ltv on this offer?IF I found a lender who offered a higher ltv, as a general rule if I bought a property for £80k that was valued at £130k would I need a deposit?i.e. does any equity in a property count towards a deposit as such, or would I need say 5% deposit of the £80k?



You need a deposit regardless. A lender doesn't work off the valuation - they work off whichever is the lowest of the valuation or the purchase price.

How are you buying it under its valuation?
Magoo_222

Do you mean 32%, or 68%? The LTV rate is the amount you want to borrow … Do you mean 32%, or 68%? The LTV rate is the amount you want to borrow (i.e. 95% LTV is a 5% deposit.) If you're right and you really do have 68% deposit... Then well done you! :pBack to your original question, you'd need a 40% deposit to take advantage of this rate. Edit: I'll caveat this by saying I'm a first time buyer who's relying on what I've read online and been told by estate agents/brokers, I'm happy to be corrected by those who know more.


Thanks for reply. i have a outstanding mortgage of £160000 and my property worth £500000 so on that base i am looking to re-mortgage deals or might this deal is good for me?
I have unfortunately agreed the previous higher rate of 2.39%. But we haven't yet exchanged or completed contracts. Does anyone know if we could switch to the lower rate prior to the mortgage being finalised? (no problems deposit wise)
@andynicol as marathonic says in general the price you are paying for the house is what it is worth so there is no equity so, yes, you need a deposit. If this is some sort of family deal to sell you a property for less than it's worth, buy it for £90k and get them to give you £10k back to use as your deposit. You might need to find some very short term bridging finance if no one has 10 grand swilling around. In principal the 10k could be a bigger number reducing your LTV. Remember though that the Stamp Duty Threshold is £125k.
Bogside

I have unfortunately agreed the previous higher rate of 2.39%. But we … I have unfortunately agreed the previous higher rate of 2.39%. But we haven't yet exchanged or completed contracts. Does anyone know if we could switch to the lower rate prior to the mortgage being finalised? (no problems deposit wise)



I think you could in principal as you just have an agreed mortgage not an actual one but HSBC would have to be ok with that. It's funny how the rates are dropping again after rising during the middle of the year must be the 0% inflation.

If there is no booking fee, usually you can switch rate without hassle. Some lenders charge an administration fee for changes post offer, depending on your loan size it would possibly be worth it. If you paid a booking fee you'd likely have to pay another. Ask them, costs nothing to find out.

Bogside

I have unfortunately agreed the previous higher rate of 2.39%. But we … I have unfortunately agreed the previous higher rate of 2.39%. But we haven't yet exchanged or completed contracts. Does anyone know if we could switch to the lower rate prior to the mortgage being finalised? (no problems deposit wise)



Edited by: "welshy2000" 3rd Oct 2015
andynicol

If I was looking to buy a house for £80k which was valued at £130k would I … If I was looking to buy a house for £80k which was valued at £130k would I require a deposit?


Not if you're buying from an immediate family member. 1 or 2 lenders will extend to other family members, no further than aunts and uncles usually. It would also depend on the valuation report not an estate agent/estimated value.
HOT !!!!!!!!

2.39% @ First Direct
Edited by: "VwGTD" 3rd Oct 2015
I'm on their 1.4% + Base rate deal (so 1.99%) at the moment, have been for a year or so. Not fixed so if base rate goes up so will the mortgage. With the rumours that the base rate will start to climb would you opt for this 5 year fixed now or hold fire?
andynicol

Is that going by the 60% max ltv on this offer?IF I found a lender who … Is that going by the 60% max ltv on this offer?IF I found a lender who offered a higher ltv, as a general rule if I bought a property for £80k that was valued at £130k would I need a deposit?i.e. does any equity in a property count towards a deposit as such, or would I need say 5% deposit of the £80k?



The calculation was done purely on the LTV, so you would have to be buying the the house for £130k and have a £52k deposit unless you are remortgaging leaving £78k to borrow. I'm not sure of your circumstances to be getting a house £50k cheaper than the value. I can only think you are buying it off a family member or are buying a council owned property you live in, cheap. Your question is interesting and I don't know the answer, sorry. I would contact the bank and speak to them. Good luck.
Hot Deal can't use it though, as only have 3yrs left on mortgage
andynicol

If I was looking to buy a house for £80k which was valued at £130k would I … If I was looking to buy a house for £80k which was valued at £130k would I require a deposit?



Its difficult to achieve this for several reasons, but mainly by paying less than its valuation you are dropping below the stamp duty threshold, so you drift into issues of tax evasion. No decent solicitor / conveyancer would agree to touch this.
Got my HSBC mortgage ready to go and day I should have sign for house last week my job put on list to go so brakes slammed on with hours to spare. My house now gone so bigger wedge will fetch me into this offer (if I still have a job).
Has anyone on here ever been a council tenant and brought their home via the right to buy scheme?
Good spot
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