HSBC 5 year fixed mortgage - 1.39% - £999 booking fee - 60% LTV @ HSBC
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HSBC 5 year fixed mortgage - 1.39% - £999 booking fee - 60% LTV @ HSBC

Deal editor62
Deal editor
Posted 21st May
HSBC now have a 5 year fixed rate mortgage with a 1.39% rate and £999 booking fee wih 60% LTV. This maybe of interest if you are up for renewal, with a higher level of equity and looking for a longer term deal. Eligible customers include if you are remortgaging, moving home, existing mortgage customer or a first time buyer. This may work out better than the First Direct 5 year fix with 1.49% rate and £490 fee.

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60% Maximum Loan to Value (LTV) - 5 Year Fixed Rate 1.39% £999 booking fee

  • 5 year fixed rate 1.44% rate with 60% LTV
  • £999 booking fee
  • Annual overpayment allowance 10%

75% Maximum Loan to Value (LTV) - 5 Year Fixed Rate 1.49% £999 booking fee

  • 5 year fixed rate 1.49% rate with 60% LTV
  • £999 booking fee
  • Annual overpayment allowance 10%


How to compare mortgages

To calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (5 x 12 = 60 payments in this case) then adding any product fee minus any cashback.

LTVs

LTV stands for loan-to-value and is the percentage of the property’s value you want to borrow. So if a property is worth £100,000 and you need to borrow £60,000, your LTV is 60%; if you need to borrow £90,000, your LTV would be 90%. All other things being equal, the lower your LTV, the better the mortgage rates you’ll be offered.
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Th3.Ripper21/05/2020 18:55

Alterations like that don't tend to add value to a property, they are for …Alterations like that don't tend to add value to a property, they are for the benefit of the current owner.I general however property prices may go down or up. Certain areas will experience greater variance, equally some property types may suffer more. There has been speculation that flats/apartments may suffer worse due to concerns over density.I wouldn't worry if unless you are planning to move (still relative unless you do not intend to buy again) or you are on the borderline of a ltv range



Doubt I agree with that. Statistics show that creating an open plan setting, especially when it's a dated old flat with a cramped kitchen, boost the value a lot. Loads more floor space and the flat feels modern and enjoyable to be in.

propertypriceadvice.co.uk/hom…hen

moneywise.co.uk/new…ays

Actually jeez, more I think about it, the more ridiculous your comment sounds. New kitchens, bathroom and open plan conversions/increased floor space 'don't tend to add value to a property'?

On what planet.

irishtimes.com/lif…329

openplanned.org/blo…ut/

I could spam endless links and research, but you have Google there.
Edited by: "Vanderlust" 21st May
paul10621/05/2020 13:49

Can't remortgage until Jan21 but the way rates are going looks perfect …Can't remortgage until Jan21 but the way rates are going looks perfect timing wise.


Same here. Existing deal ends in December. All that money I'll be saving will be gobbled up by the tax rises that we'll have for the next 20 years.
My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 to transfer my mortgage from standard variable rate (about 4% then) to a new tracker product.
I said no thank you, liquidated all my ISA investments on FTSE before the stock market crash, and paid off my mortgage end of February with the capital and gains released. Lucky escape! Now debt free, but with very little savings.
Edited by: "cfphoenix" 22nd May
I’m waiting until they go below 1% 😁
62 Comments
I’m waiting until they go below 1% 😁
Can't remortgage until Jan21 but the way rates are going looks perfect timing wise.
Edited by: "paul106" 21st May
paul10621/05/2020 13:49

Can't remortgage until Jan21 but the way rates are going looks perfect …Can't remortgage until Jan21 but the way rates are going looks perfect timing wise.


Same here. Existing deal ends in December. All that money I'll be saving will be gobbled up by the tax rises that we'll have for the next 20 years.
paul10621/05/2020 13:49

Can't remortgage until Jan21 but the way rates are going looks perfect …Can't remortgage until Jan21 but the way rates are going looks perfect timing wise.


I'm remortgaging around October... here's hoping!
stuart_7521/05/2020 14:05

Same here. Existing deal ends in December. All that money I'll be saving …Same here. Existing deal ends in December. All that money I'll be saving will be gobbled up by the tax rises that we'll have for the next 20 years.


You can generally secure re-mortgage offers 3-6 months ahead of redemption.

Check with the lender. I have something already lined up (for October) with the post office as fallback in case of market changes or a house price crash.

Fortunately I only need 50%ltv
Edited by: "bagga212" 21st May
bagga21221/05/2020 14:35

You can generally secure re-mortgage offers 3-6 months ahead of …You can generally secure re-mortgage offers 3-6 months ahead of redemption.Check with the lender. I have something already lined up (for October) with the post office as fallback in case of market changes or a house price crash.Fortunately I only need 50%ltv


My LTV is quite low too, 80k loan, 350k value, currently paying 2.5% but on an offset, so saving a couple of quid on the interest. Seems like the good times are here on cheap rates, I do think they will here for the whole of this year at least.
stuart_7521/05/2020 14:39

My LTV is quite low too, 80k loan, 350k value, currently paying 2.5% but …My LTV is quite low too, 80k loan, 350k value, currently paying 2.5% but on an offset, so saving a couple of quid on the interest. Seems like the good times are here on cheap rates, I do think they will here for the whole of this year at least.


INDEED

My resi is due next year April. But couple BTLs remortgage deals to sort out by the end of the calendar year. These are looking lucrative.
All these "good" deals are 60% ltv. Banks must be expecting trouble. Your 40% could be vapourised.
ifeelsuelawley21/05/2020 14:51

All these "good" deals are 60% ltv. Banks must be expecting trouble. Your …All these "good" deals are 60% ltv. Banks must be expecting trouble. Your 40% could be vapourised.


What the alternative?
bagga21221/05/2020 14:35

You can generally secure re-mortgage offers 3-6 months ahead of …You can generally secure re-mortgage offers 3-6 months ahead of redemption.Check with the lender. I have something already lined up (for October) with the post office as fallback in case of market changes or a house price crash.Fortunately I only need 50%ltv


Don't you have to pay the booking fee to secure the deal though. And if you don't then take it the booking fee is lost?
morpheus21/05/2020 15:37

Don't you have to pay the booking fee to secure the deal though. And if …Don't you have to pay the booking fee to secure the deal though. And if you don't then take it the booking fee is lost?


Well this one there was no booking fee n free valuation.

The product fee of 499 is added to the loan on redemption + plus a cheeky 500£ cashback.

Seemed rude not to secure given the climate.

Its BTL product actually posted on hotukdeals
hotukdeals.com/deals/post-office-mortgages-196-5-year-fixed-deal-btl-495-fees-500-cashback-60-ltv-3422213
Edited by: "bagga212" 21st May
bagga21221/05/2020 15:39

Well this one there was no booking fee n free valuation. The product fee …Well this one there was no booking fee n free valuation. The product fee of 499 is added to the loan on redemption + plus a cheeky 500£ cashback. Seemed rude not to secure given the climate.Its BTL product actually posted on hotukdealshotukdeals.com/deals/post-office-mortgages-196-5-year-fixed-deal-btl-495-fees-500-cashback-60-ltv-3422213


The rich just keep getting richer
Changed our flat a lot since we got it a year and a half ago, made it open plan, new bathroom, kitchen, nice floor etc

I'm scared to get it valued now though before a remortgage (due in November). You think they'd value it down because of they expect a decrease in house prices?
Have a read of the governors latest comments, there is a good chance negative base rate is on the cards at the next review meeting.
I'm in the market in two months so I am hoping it continues to head south
bilbob21/05/2020 14:22

I'm remortgaging around October... here's hoping!


Same here . Hoping to see some more drop in interest rate hopefully.
Vanderlust21/05/2020 18:02

Changed our flat a lot since we got it a year and a half ago, made it open …Changed our flat a lot since we got it a year and a half ago, made it open plan, new bathroom, kitchen, nice floor etcI'm scared to get it valued now though before a remortgage (due in November). You think they'd value it down because of they expect a decrease in house prices?


Alterations like that don't tend to add value to a property, they are for the benefit of the current owner.
I general however property prices may go down or up. Certain areas will experience greater variance, equally some property types may suffer more. There has been speculation that flats/apartments may suffer worse due to concerns over density.
I wouldn't worry if unless you are planning to move (still relative unless you do not intend to buy again) or you are on the borderline of a ltv range
Th3.Ripper21/05/2020 18:55

Alterations like that don't tend to add value to a property, they are for …Alterations like that don't tend to add value to a property, they are for the benefit of the current owner.I general however property prices may go down or up. Certain areas will experience greater variance, equally some property types may suffer more. There has been speculation that flats/apartments may suffer worse due to concerns over density.I wouldn't worry if unless you are planning to move (still relative unless you do not intend to buy again) or you are on the borderline of a ltv range



Doubt I agree with that. Statistics show that creating an open plan setting, especially when it's a dated old flat with a cramped kitchen, boost the value a lot. Loads more floor space and the flat feels modern and enjoyable to be in.

propertypriceadvice.co.uk/hom…hen

moneywise.co.uk/new…ays

Actually jeez, more I think about it, the more ridiculous your comment sounds. New kitchens, bathroom and open plan conversions/increased floor space 'don't tend to add value to a property'?

On what planet.

irishtimes.com/lif…329

openplanned.org/blo…ut/

I could spam endless links and research, but you have Google there.
Edited by: "Vanderlust" 21st May
Bloody hell these rates keep on going down
My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 to transfer my mortgage from standard variable rate (about 4% then) to a new tracker product.
I said no thank you, liquidated all my ISA investments on FTSE before the stock market crash, and paid off my mortgage end of February with the capital and gains released. Lucky escape! Now debt free, but with very little savings.
Edited by: "cfphoenix" 22nd May
Completely how long is a piece of string question but what rate do you expect 90% LTV 5 years to be when they start coming back in the market at more competitive rates? Pre-COVID I was looking at 2.2-2.3% but we’ve seen the base rate drop by 0.65% though offset by a fear house prices are about to take at least a small fall if not more resulting in the cull of products at this LTV. I’m not looking to want to lower any offers made on a property but at the same time want a competitive rate, maybe I’m wanting too much!
cfphoenix22/05/2020 02:10

My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 …My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 to transfer my mortgage from standard variable rate (about 4% then) to a new tracker product. I said no thank you, liquidated all my ISA investments on FTSE before the stock market crash, and paid off my mortgage end of February with the capital and gains released. Lucky escape! Now debt free, but with very little savings.


That's exactly what I did about 9 years ago just before the euro crisis. Been investing what I would have paid into my mortgage and more since then and well into 6 figures now. This April was a good buying opportunity but investing monthly will also help smooth over the inevitable bumps coming in the markets in the next few years
Edited by: "tallpete33" 22nd May
silly question but can i remortgage and take out extra money to start a business?
Th3.Ripper21/05/2020 18:55

Alterations like that don't tend to add value to a property, they are for …Alterations like that don't tend to add value to a property, they are for the benefit of the current owner.I general however property prices may go down or up. Certain areas will experience greater variance, equally some property types may suffer more. There has been speculation that flats/apartments may suffer worse due to concerns over density.I wouldn't worry if unless you are planning to move (still relative unless you do not intend to buy again) or you are on the borderline of a ltv range


That’s not true - the exception being if the house is already in excellent condition with a modern decor. Otherwise, making those changes definitely does add significant value.

A lot more so than used to be the case, as well. These days, people are less keen on renovating their own house. So modernising adds not only value but also increases demand.
paul10621/05/2020 13:49

Can't remortgage until Jan21 but the way rates are going looks perfect …Can't remortgage until Jan21 but the way rates are going looks perfect timing wise.


You can you just pay an early redemption charge of your existing mortgage, so if the new one saves you a bunch of ££ then it can be worth it.

But rates wont be changing any time soon so expect these offers to be around for a while anyway so no need to rush
ifeelsuelawley21/05/2020 14:51

All these "good" deals are 60% ltv. Banks must be expecting trouble. Your …All these "good" deals are 60% ltv. Banks must be expecting trouble. Your 40% could be vapourised.


You always get a better rate the lower you ltv is, its like an insurance policy.
If you default they are pretty certain at ,60% they will get their money back and maybe extra.
jaheermk22/05/2020 04:25

silly question but can i remortgage and take out extra money to start a …silly question but can i remortgage and take out extra money to start a business?


If you have equity then of course you can take money out, all depends on how much, your credit score etc etc but its certainly doable
Vanderlust21/05/2020 18:02

Changed our flat a lot since we got it a year and a half ago, made it open …Changed our flat a lot since we got it a year and a half ago, made it open plan, new bathroom, kitchen, nice floor etcI'm scared to get it valued now though before a remortgage (due in November). You think they'd value it down because of they expect a decrease in house prices?


Difficult to say.

I think it's best to set your expectations properly: flat value may have increased because of the work you have done, but maybe not by the amount you invested. Also, a lot of remortgage valuations are done via tools/software, and those wouldn't of course be aware of work/improvements being done. The only way to include those is to have someone coming and doing a proper valuation.

Yes, everybody expects a house price decrease given the current crisis and likely impact on the economy for several years. If lots of companies go bankrupt and a lot of people are unemployed, this cannot be positive for the property market.
tomtomato22/05/2020 07:17

Difficult to say.I think it's best to set your expectations properly: flat …Difficult to say.I think it's best to set your expectations properly: flat value may have increased because of the work you have done, but maybe not by the amount you invested. Also, a lot of remortgage valuations are done via tools/software, and those wouldn't of course be aware of work/improvements being done. The only way to include those is to have someone coming and doing a proper valuation.Yes, everybody expects a house price decrease given the current crisis and likely impact on the economy for several years. If lots of companies go bankrupt and a lot of people are unemployed, this cannot be positive for the property market.



Not looking to sell right now so it's not so bad for us if prices temporarily drop, but wouldn't want a drop in valuation on remortgage. Wasn't a homeowner at the last financial crisis where prices dropped 20% in the first 16 months. I'm wondering how people remortgaging then went about it. I'm guessing banks didn't lower the property values on application, maybe just used the original valuation from when the mortgage was first taken out?
fredflintstone1122/05/2020 03:03

Completely how long is a piece of string question but what rate do you …Completely how long is a piece of string question but what rate do you expect 90% LTV 5 years to be when they start coming back in the market at more competitive rates? Pre-COVID I was looking at 2.2-2.3% but we’ve seen the base rate drop by 0.65% though offset by a fear house prices are about to take at least a small fall if not more resulting in the cull of products at this LTV. I’m not looking to want to lower any offers made on a property but at the same time want a competitive rate, maybe I’m wanting too much!


There hasn't been so far an impact on 5 year mortgages following the significant drop of base rate. The mortgages and rates available now are pretty much the same as earlier this year, prior to the drop.

I remortgaged with First Direct in January (5 year fixed) and rate is still exactly the same now.
Vanderlust21/05/2020 18:02

Changed our flat a lot since we got it a year and a half ago, made it open …Changed our flat a lot since we got it a year and a half ago, made it open plan, new bathroom, kitchen, nice floor etcI'm scared to get it valued now though before a remortgage (due in November). You think they'd value it down because of they expect a decrease in house prices?


House prices haven't changed. The only thing that's changed is the "buyer" wanting loads of discount because they think everything should be cheap now. Your newly renovated flat is worth just as much as what it was worth before this pandemic.
MonkeyMan9022/05/2020 07:23

House prices haven't changed. The only thing that's changed is the "buyer" …House prices haven't changed. The only thing that's changed is the "buyer" wanting loads of discount because they think everything should be cheap now. Your newly renovated flat is worth just as much as what it was worth before this pandemic.


A property is worth what people are willing to pay for, and i am sure there are significantly fewer people now willing to buy a property or move. The ones who do will not pay asking price for sure.

Supply and demand. Fewer buyers = lower prices
tomtomato22/05/2020 07:37

A property is worth what people are willing to pay for, and i am sure …A property is worth what people are willing to pay for, and i am sure there are significantly fewer people now willing to buy a property or move. The ones who do will not pay asking price for sure.Supply and demand. Fewer buyers = lower prices


Swings and roundabouts, there is simply not enough housing stock for everyone and this government will in no way be addressing that. If unaffordable now things will only get worse for non home owners with increasing rents.
No cashback on this, Nationwide mortgage at 1.44% is better?
cfphoenix22/05/2020 02:10

My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 …My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 to transfer my mortgage from standard variable rate (about 4% then) to a new tracker product. I said no thank you, liquidated all my ISA investments on FTSE before the stock market crash, and paid off my mortgage end of February with the capital and gains released. Lucky escape! Now debt free, but with very little savings.


How much did you clear off if you don’t mind me asking? Will you be investing in FTSE again, if so which companies?
This is a good deal but with the fee still works out £300+ more for me than the 1.59% fee saver deal.

I have a question though, does anyone know if I apply for the 1.59% deal and HSBC lower that rate as well, can I switch to the new lower rate product during the application process prior to completion?
MonkeyMan9022/05/2020 07:23

House prices haven't changed. The only thing that's changed is the "buyer" …House prices haven't changed. The only thing that's changed is the "buyer" wanting loads of discount because they think everything should be cheap now. Your newly renovated flat is worth just as much as what it was worth before this pandemic.



Prices are regional. In my area of South London, house prices are actually dropping. New builds arent shifting, and non new builds are reducing their asking price.
ifeelsuelawley21/05/2020 14:51

All these "good" deals are 60% ltv. Banks must be expecting trouble. Your …All these "good" deals are 60% ltv. Banks must be expecting trouble. Your 40% could be vapourised.


Why ?? All mortgage deals have always offered better interest rates if you can put in a bigger deposit.
ifeelsuelawley21/05/2020 14:51

All these "good" deals are 60% ltv. Banks must be expecting trouble. Your …All these "good" deals are 60% ltv. Banks must be expecting trouble. Your 40% could be vapourised.


You do realise this has ALWAYS been the case?
cfphoenix22/05/2020 02:10

My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 …My HSBC tracker mortgage came to an end in January, and HSBC wanted £999 to transfer my mortgage from standard variable rate (about 4% then) to a new tracker product. I said no thank you, liquidated all my ISA investments on FTSE before the stock market crash, and paid off my mortgage end of February with the capital and gains released. Lucky escape! Now debt free, but with very little savings.


Don't get me wrong I'm happy for you that you now have no mortgage... But you write that like you're having a hard time with your finances. You're in a very fortunate position indeed, if you were able to pay off your mortgage using just savings I don't think a lack of savings is going to be a big issue for you somehow. How the other half live eh.
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