Lifetime Tracker Mortgage 1.79% (1.29% + BoE 0.5%) @ HSBC
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Lifetime Tracker Mortgage 1.79% (1.29% + BoE 0.5%) @ HSBC

191
Found 7th Apr 2016
Currently best lifetime tracker mortgage available in the market imo. If your LTV is 60% and you are interested to pay off mortgage as soon as possible. This is the best deal you can get. The interest rate is only 1.79% for lifetime meaning you don't need to switch again and you can overpay as much and whenever you can. Even if you want to switch you can do it anytime and there is no early payment charges. The only fee you pay is the booking fee of £749 if you opt for Advance or premier current account otherwise for standard account it is £999. Free conveyancing, free survey.

Most of the lenders currently like Nationwide, Barclays, metro, Santander are offering discounted tracker or fixed term mortgages and interest rates are higher and mostly allow to overpay to max of 10% of remaining balance or pay early repayment charges.

So if you want flexibility of over-payment with very low interest rates, this is the time to switch lender and save thousand of pounds.

From HSBC Website:

Lifetime Tracker Rate: This product will track the Bank Of England (BoE) base rate plus (1.29%).
Details of your interest rate will be set out in your Key Facts Illustration (KFI).

If there is any better rate available in future, you can easily switch to better rates!

191 Comments

The rate is 1.79 over base meaning if base rate moves up, your interest rate will always be that + 1.79%.

Is this 1.79 + bank of England interest rate which is 0.5 ?

grajac123

Is this 1.79 + bank of England interest rate which is 0.5 ?



Yep

Original Poster

It is 1.29% + 0.5% base rate = 1.79%

The interest rate is the BoE base rate plus 1.79%, not 1.79% as you claim, and will always be 1.79% above the BoE rate. It is a low rate but different to what your comment states.

Original Poster


No it is 1.29% + 0.5% base rate
Edited by: "mkshaikh" 8th Apr 2016

I can't see 1.29% mentioned anywhere?

Key features

Lifetime Tracker Rate: This product will track the Bank Of England (BoE) base rate plus (1.29%).
Details of your interest rate will be set out in your Key Facts Illustration (KFI). HSBC lifetime tracker rates are variable and the rate is set at a fixed percentage above the BoE base rate, which is currently (0.5%). The interest rate you will pay will rise and fall in line with changes to the BoE base rate for the life of the loan.

Qualifying criteria: HSBC Advance is available to customers who pay in £1,750 or more each month, not including money transferred from other sole or joint personal accounts held with HSBC Bank.

oddballjamie

Key features Lifetime Tracker Rate: This product will track the Bank Of … Key features Lifetime Tracker Rate: This product will track the Bank Of England (BoE) base rate plus (1.29%). Details of your interest rate will be set out in your Key Facts Illustration (KFI). HSBC lifetime tracker rates are variable and the rate is set at a fixed percentage above the BoE base rate, which is currently (0.5%). The interest rate you will pay will rise and fall in line with changes to the BoE base rate for the life of the loan. Qualifying criteria: HSBC Advance is available to customers who pay in £1,750 or more each month, not including money transferred from other sole or joint personal accounts held with HSBC Bank.



Cheers, couldn't see that.

Bourne9482

Cheers, couldn't see that.


It was on the calculator part. Not the easiest to find.

Original Poster

grimphil

The interest rate is the BoE base rate plus 1.79%, not 1.79% as you … The interest rate is the BoE base rate plus 1.79%, not 1.79% as you claim, and will always be 1.79% above the BoE rate. It is a low rate but different to what your comment states.


Again I can confirm it is 1.29% + BoE Base rate of 0.5%, making it 1.79%. Ofcource if BoE base rate changes your rate will get an affect. But since last 8 years it has been at 0.5% and imo it will remain stagnant for few more years. You have a flexibilty to switch to a better deal if it changes but finger crossed it won't change in near future.

Original Poster

Thanks oddballjamie for sharing it.
Edited by: "mkshaikh" 8th Apr 2016

Original Poster

Lupeto

I went with Coventry 1.85% variable offset mortgage (so BoE + … I went with Coventry 1.85% variable offset mortgage (so BoE + 1.35%)http://www.coventrybuildingsociety.co.uk/mortgages/offset-mortgage.aspxGood rate and, rather than overpaying, get the same effect by putting the money in a linked savings account to reduce the interest paid.Gives flexibility if you want to dip into your savings.



What is the term time for this rate. Is there any limit in offset account? if needed how long does it take to get the money back? Are there any charges if you take the money out?

Good rate but luckily I'm on BofE base +0.55%. :-)

Just to add, thanks to HUKD a couple of years ago I switched to a HSBC BoE+2.44% mortgage; was super easy, basically you fill out a 3 or 4 page form then they just keep updating you. No hassle, saved thousands, now mortgage free.

Basically if you can afford to whilst interest rates are so low, dump all spare money into paying off your 'bricks and mortar'. There can be exceptions (if you're getting very good returns elsewhere I.e. investments), but I've had too much wine to carry on typing.

Original Poster

@Martini: You are a lucky chap. who is your lender?

mkshaikh

What is the term time for this rate. Is there any limit in offset … What is the term time for this rate. Is there any limit in offset account? if needed how long does it take to get the money back? Are there any charges if you take the money out?



Sorry...deleted original post as I thought I was a bit drunk for t'internet

I took 25 year term, but aim to pay off early by piling money in the offset account and paying the mortgage off early when there's enough savings.

It's a variable rate of BaseRate + 1.35%, so no term time (not a discount rate).

Basically, any money you have in the savings account is deducted from the principle when calculating interest.

No penalty for taking money out of the saving account, apart from subsequently paying interest on the extra principle, due to less offset money in the savings account.

The key is that you're not actually overpaying and reducing the principle...any offset money is, in effect, reducing the principle, but you can access the offset money any time you like

Original Poster

Sounds like a good deal too. But I believe this is a deal for employed people and not for contractors like me.

mkshaikh

Sounds like a good deal too. But I believe this is a deal for employed … Sounds like a good deal too. But I believe this is a deal for employed people and not for contractors like me.


I know what that's like dude...in 16 years contracting, I never contemplated a mortgage. I always saw it as the luxury of a permie job :).

i'll have to look into this as i'm annoyed so many mortgages tell me what i can repay, but as someone mentioned do you a)have to have a HSBC current account and b) have to have £1750 paid in a month ?

Martini

Good rate but luckily I'm on BofE base +0.55%. :-)



That's nothing.
Boe plus 0.17%
Boo yaa!

Banned

What's a Mortgage?

format

i'll have to look into this as i'm annoyed so many mortgages tell me what … i'll have to look into this as i'm annoyed so many mortgages tell me what i can repay, but as someone mentioned do you a)have to have a HSBC current account and b) have to have £1750 paid in a month ?




format i wondered that too. i think the £1750 is just for the 'advance' bank account, and not a qualifying feature for this mortgage offer?

edit, nope apologies, it is a qualifying feature of this mortgage. dis-counts movements of money internally between HSBC accounts, but not externally.
Edited by: "FTOdude170" 8th Apr 2016

Lupeto

I know what that's like dude...in 16 years contracting, I never … I know what that's like dude...in 16 years contracting, I never contemplated a mortgage. I always saw it as the luxury of a permie job :).



As long as you can show a history of your contract being renewed HSBC will consider a mortgage for contractors.

Perfect timing thank you for the info

excellent deal particularly since the market isn't factoring a rate rise until 2020

If you dot have HSBC bank account, set up fee is £999 instead of £749. Same rate available though.

Bourne9482

I can't see 1.29% mentioned anywhere?



Lifetime Tracker Rate: This product will track the Bank Of England (BoE) base rate plus (1.29%).
Details of your interest rate will be set out in your Key Facts Illustration (KFI).

LTV is 60%!

mkshaikh

The interest rate is only 1.79% for lifetime



No it's not, it's 1.29% plus whatever the BoE base rate is. You can't say that will add up to 1.79% for the lifetime of the mortgage because it's a tracker mortgage, not a fixed rate.

Good deal if you have 40% equity. I'm on BoE+1.49% with HSBC currently and would recommend them. Pretty easy application process. The rate even changed in my favour during the application process and they allowed me to change to the new rate.

godzillafan

LTV is 60%!



In these times of rising house prices, lots of people have that.

If you dont want to be an advance customer you can have the same rate but with £999 booking fee. Still a good deal!

Is there any better deals available other than this?

Well I hope this sort of deal is still around when I come off my fixed in a year!

Yeah, don't waste time with HSBC mortgages. They'll pre-approve, jump you through a million hoops and then sack you off at the last minute despite the mortgage being easily affordable. ****. I'm sure it's just a scam to get more people to get bank accounts with hsbc.
HSBC = Absolute **** timewasting cretins

Clearest sign yet that NIRP is on the way.

Remember, cash is king...but not in the bank!

Also, British Gold Sovereigns have no CGT as the are classed as legal tender

ukwestspeed

excellent deal particularly since the market isn't factoring a rate rise … excellent deal particularly since the market isn't factoring a rate rise until 2020



Don't be so quick to 'bank' on that. If Brexit happens, the pound will lose value and could force the BoE to raise rates to compensate.

Many people are throwing caution to the wind (what with ludicrously high house prices and the banks QE cash that has to earn money somewhere) and base their financial situation on rates being low forever. Things could unravel for some very fast indeed.

When making a big financial decision such as a mortgage, you should always seek independent advice if you are not financially minded. You need to make sure that you will be able to cover the payments, whatever the financial climate.

Edited by: "sideysid" 8th Apr 2016

Lupeto

I know what that's like dude...in 16 years contracting, I never … I know what that's like dude...in 16 years contracting, I never contemplated a mortgage. I always saw it as the luxury of a permie job :).



​9 years contracting, paid off mortgage in 6 years. If I was in Permieville I'd still be paying it off with £1000's of interest! (_;)
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