tracker mortgage hsbc 3.9% lifetime £799 fee 60% loan to value (Term Tracker 07.11.08 £799 3.99% Base rate + 0.99% for the term 4.2% )
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tracker mortgage hsbc 3.9% lifetime £799 fee 60% loan to value (Term Tracker 07.11.08 £799 3.99% Base rate + 0.99% for the term 4.2% )

104
Found 16th Nov 2008
just found this i dont think its bad the best i can find at the moment

100 Comments

Life Time Tracker - Special Effective Date Booking Fee Rate Bank of England Base Rate + Ov cost for com
Term Tracker 07.11.08 £799 3.99% Base rate + 0.99% for the term 4.2%

Good deal as there is only small print stating that the terms will not change unless there is a material change in the mortgage market, where as other lenders tracker deals have a lower rate limit.

hmm commit to a tracker for life dont know about that, although interest rates are low now you may find yourself paying over the odds in the future?
Ive always gone with short terms fixed deals 2 yrs, might commit longer this time when my deal expires mid way thru next yr with current interest rates, just hope fixed rate deals come down

Title is a bit misleading and sounds like a contradiction. I'd change it to, tracker, +0.99% lifetime etc.

@HARRIA01, all life means is that there is no time limit on it but generally you can pay it off early or switch to another lender but there are redemption fees to pay if you want to do that. I have a one account taken out in Jan '07 which was £499 arrangement fee and is 0.49% above base for the lifetime of the mortgage but I can pay it off early\switch for £225. I decided that even though it wasn't the best rate around at the time it suited me as I could offset my savings against it and if the rate went up I could switch and try and get a better deal elsewhere. So what are the redemption fees for this mortgage?
Cheers
Rob

Just to answer my own question .....

Interest Type Variable
Maximum Loan To Valuation (LTV) 60%
Is interest calculated daily? Yes
Can I make unlimited lump sum payments without incurring a fee? Yes
Can I make unlimited overpayments without incurring a fee? Yes
Is there an Early Repayment Charge? No
Is there an extended tie-in period? No
Is there any exit fee? No
Can I 'Port' my loan if I move home? Yes

So it seems like a good deal. The initial arrangement fee seems a bit higher than what I'm used to but that is probably as they have rolled the redemption fees into it. Could be a good one to get if they keep interest rates low.

Even if you only had it for a year or so, at a low arrangement fee and no early redemption/tie in period, you could jump to a different deal if you so chose...My mortgage isn't up until March 2009, but I'd jump onto this now if I could.

Our fixed rate comes to an end next May. Tracker with our provider is 5.99! Don't think I'll be staying loyal

I'm interested in this lifetime tracker and it hasn't any redemption penalty, so if rates start to go could I switch back to a fixed rate?

my one which is going through at the moment ( remotgage buying ex out) is tracker rate ( so prettty low at the mo) PLUS it gives me the option to fix it at anytime.. Im not tied into this tracker deal.. im going to fix it at this low rate after the new yr as it is expected to drop another half percent.Just hope the mortgage companys follow suit! So i can FIX FIX FIX!!

The interest drop has saved me nearly 200 quid this month!

title is a little misleading as this is a base rate tracker NOT 3.9% for the lifetime of the mortgage. it is bank of england base rate plus 0.99% for the lifetime of the mortgage. be sure you understand this before signing up.

havent voted hot or cold just thought this point needed to be clarified. ;-)

welshblob;3477937

Title is a bit misleading and sounds like a contradiction. I'd change it … Title is a bit misleading and sounds like a contradiction. I'd change it to, tracker, +0.99% lifetime etc. @HARRIA01, all life means is that there is no time limit on it but generally you can pay it off early or switch to another lender but there are redemption fees to pay if you want to do that. I have a one account which is 0.49% up base for the lifetime of the mortgage but I can pay it off early\switch for £225. So what are the redemption fees for this mortgage? Cheers Rob




None ;-)

Feature Life Time Tracker
Interest Type Variable
Maximum Loan To Valuation (LTV) 60%
Is interest calculated daily? Yes
Can I make unlimited lump sum payments without incurring a fee? Yes
Can I make unlimited overpayments without incurring a fee? Yes
Is there an Early Repayment Charge? No
Is there an extended tie-in period? No
Is there any exit fee? No
Can I 'Port' my loan if I move home? Yes


it's the best LTV tracker deal about: thisismoney.co.uk/homes :thumbsup:

agree with vinylandtrinkets - its only the ltv that lets this down, expecially with recent house price falls. shame. think I will miss out by 6%, might be worth cracking them out still. anyone know if theres a reservation fee for those of us with a couple of months on current mortgages? thanks to op for letting us know - lots of us looking for new and improved deals!

by the time people switch and pay the fees, they work out more than the saving usually. is it really worth it? iam paying 5.69 fixed till 2010. then abbey svr which is just a bit less than that now.

same deal is availabe frm northern bank for 70% LTV and no fee if you sign up for their current account whici costs £10.00/month

Who has 40% deposit these days?

Seems strange that Barclays were doing base rate plus 0.3% just a few months ago.

It was free with legal fees paid :thinking:


Clearly the Banks are now out to make a profit to offset their credit crunch losses :x

me

So you can only borrow 60% of the value of the property, well thats no good if your a first time buyer and dont have 40% deposit! x

One thing to watch out for is if there is a collar on the rate - ie if the base rate drops below a certain level, the rate on the mortgage won't be changed

missgem;3478311

So you can only borrow 60% of the value of the property, well thats no … So you can only borrow 60% of the value of the property, well thats no good if your a first time buyer and dont have 40% deposit! x



HBOS are still able to lend up to 95% at the moment, get yourself down for an interview and see what you can do. The headline rate is 4.99% fixed for 3 years at the moment, but I think it's slightly more for a 95% lend.

Worth getting a quote anyway if you're in the market.

Supermod

naj131;3478334

One thing to watch out for is if there is a collar on the rate - ie if … One thing to watch out for is if there is a collar on the rate - ie if the base rate drops below a certain level, the rate on the mortgage won't be changed



They call that a "floor rate".
This is an excellent calculator for working out mortgage payments etc....
jeacle.ie/mor…uk/

A bank lending money??? Whatever next???

What this shows is that the base rate could be very low for a sustained period of time.

Good news for mortgage rates, very bad news for the property market, economy and people wanting to get a mortage for the first time...

Just for the people running the site you need to look carefully at the rules pertaining to offering advice on financial products. You cant give advice unless suitably qualified and you make people aware you are. I dont know how this applies to forums but its a very sensitive issue more so now than ever. Should really be a disclaimer on financial threads like this saying no advice is being given, no interst in the product, take professional advice etc etc etc.

vinylandtrinkets;3478121

the other thing to remember before you take out this mortgage is they are … the other thing to remember before you take out this mortgage is they are only lending 60% of the value of your house....so if as many have over the last few weeks the value of your house has dropped you may not be able to borrow the full amount to cover your current mortgage or if you have a 40% deposit your fine.for instanceif my mortgage is £75,000.0060% of this is £45,000.00 so i have a short fall of £30,000.00not such a good deal after all


Not such a good deal for 'you' perhaps because of your personal circumstances, but that doesnt make it a good deal.

This house price crash has at least another 2 years to run and likely 30% off the average house.:thumbsup:

Why risk that? Wait until the main indexes such as the Halifax index or the land registry index shows YOY positives.:whistling:

You don't want to buy a house for £200k and find out in two years time you could have got the same for £140k.......:oops:

Market analysts are now saying it could be 10 years before price get back to the peak of 2007. Not good

Supermod

cells;3478633

This house price crash has at least another 2 years to run and likely 30% … This house price crash has at least another 2 years to run and likely 30% off the average house.:thumbsup:Why risk that? Wait until the main indexes such as the Halifax index or the land registry index shows YOY positives.:whistling:You don't want to buy a house for £200k and find out in two years time you could have got the same for £140k.......:oops:



...but if you are selling your house, there is every chance that you are going to buy another. You will get the same sort of reduction on an ongoing purchase.

Thats what people dont realise. They just assume they will lose money but everything is in proportion. If you want to upsize, the cheaper mortgages mean you have chance to save up.

alera;3478650

Market analysts are now saying it could be 10 years before price get back … Market analysts are now saying it could be 10 years before price get back to the peak of 2007. Not good



Why not good??

if the price of milk drops you are happy
if the price of bread drops you are happy
if the price of petrol drops you are happy
if the price of homes drop you are unhappy?

Ridiculous, they are all things we need to buy. The cheaper the better for this nation.
Ideally the average house would only cost 2x the average wage which would make it £50,000 and not £150,000.

the porter;3478660

maybe not but this deal is more for moving customers like me, im with the … maybe not but this deal is more for moving customers like me, im with the britannia they have removed all their tracker mortgages, and im now on the variable 6% they havent as yet passed on the 1.5% drop so this deal is ideal for me, i will just scrape in with the 60% ltov so i will be switching lenders tomorrow unless britannia do something better.



Take a look at HSBC maximum loans too, from memory I think they only offer 3.5x single income unlike most banks who where doing 6x income up until recently.

missgem;3478311

So you can only borrow 60% of the value of the property, well thats no … So you can only borrow 60% of the value of the property, well thats no good if your a first time buyer and dont have 40% deposit! x



There's no collar. My partner and I have a 70K deposit as first time buyers (would have 12K more, but the stock market's swallowed that). Trouble is, HSBC is offering us 30K less than their website estimates, which is proving problematic.

Katharine;3478802

There's no collar. My partner and I have a 70K deposit as first time … There's no collar. My partner and I have a 70K deposit as first time buyers (would have 12K more, but the stock market's swallowed that). Trouble is, HSBC is offering us 30K less than their website estimates, which is proving problematic.



Blessing in disguise.

the porter;3478660

maybe not but this deal is more for moving customers like me, im with the … maybe not but this deal is more for moving customers like me, im with the britannia they have removed all their tracker mortgages, and im now on the variable 6% they havent as yet passed on the 1.5% drop so this deal is ideal for me, i will just scrape in with the 60% ltov so i will be switching lenders tomorrow unless britannia do something better.



It looks to be one of the best trackers currently available. Lots of others now seem to be base rate + 1.69% or higher. But on top of the £799 fee there is a valuation fee;

£75,000 £125
£100,000 £135
£150,000 £155
£200,000 £175
£250,000 £195
£300,000 £225
£400,000 £265
£500,000 £325
etc ...

And what about legal fees ? Do they offer a free conveyancing service if you are switching ?

But if you're not intending to remortgage in next few years switching from a rate of ~6% may save you money (depending on loan size and duration). I've been using Google spreadsheets and online mortgage calculators to check each deal especially looking at the total payable over say 3+ years. But I too am hoping that Britannia will cut their SVR to perhaps 4.8% which may make this less attractive considering it will cost me at least £1000 in fees which I'd have to add to my mortgage!

Cheers
Addy

PS: I am not a financial advisor

I think this is quite a scary deal. I would need to look at all the details more closely. ie Redemption time frame etc.
Jan 08 we opted for a tracker mortgage for the first tim(previously fixed rate) it was the only deal that suited us at the time. My husband was a lot more confident in it than I.
However, 2 weeks ago when the base rate fell to 3% my husband couldn't hide his smugness!
Yes, it's been great for us, but 'lifetime deals' sounds a bit scary!

does this deal belong on here?

regardless, there will be many more products available out of the next few weeks as the banks come to terms with the recent massive interest rate cut.

my advice would be get yourself an IFA mortage advisor, best to get one from a friends recommendation. they will find the very best deal for you and shouldnt charge a fee. it also takes the stress out and the fill all the forms in for you and just send them for you to check and sign. if this HSBC one is the best for you, theyll give it ya!

Thanks, any idea for a best "buy to let "can do the same 60% or 65%.. would be much appreciated.

in todays climate i'd be getting a fixed Manchester Building Society - 5.89% Fixed for 30 years Max LT 85%

got both my mates on longterm FIXED - one last year with NR till 2025 5.8% & the other Co-op 30years @ 5.6%

you know your fixed & unlike rent or a mortgage its easier to plan for anything on a longterm fixed, long term SECURITY @ a decent rate rather than saving 1 or 2% each time you remortgage more so avioding this economic mess & prob the next two as & your recession covered for TERM, no rate hikes for you & as I said BETTER than renting which for most tenants yearly goes up a little

£100,000 asset, £50000 borrowed = £324.50 for term

what will £325 buy/rent in 2 months, 2 years ? then think 10 years from now........

SECURITY at a decent rate is what you all need to look at for the long term...

I'd like to see the 3.9% in the title preceded by 'currently' - it definitely gives the impression that it is a 3.9% lifetime deal...

Interest rates are falling, so this will be a good deal over the next year or so. However, the longer term norm for interest rates in the UK is a lot higher than it is now, so it'll rise up beyond that, back to something normal like base 5% (ie 6% for this) in 3 years probably. Of course you can then switch, but there won't be anything remotely as good available then.

Personally I'd be looking to go onto 5yr or even 10yr fixed rate early next year, when BoE base rate has fallen to 2%, 1% or perhaps even lower. There will be some stupendously silly deals around then, and you'll be able to lock into a rate that'll be far lower than the likely average on a tracker.

seaniboy;3479005

in todays climate i'd be getting a fixed Manchester Building Society - … in todays climate i'd be getting a fixed Manchester Building Society - 5.89% Fixed for 30 years Max LT 85%got both my mates on longterm FIXED - one last year with NR till 2025 5.8% & the other Co-op 30years @ 5.6%you know your fixed & unlike rent or a mortgage its easier to plan for anything on a longterm fixed, long term SECURITY @ a decent rate rather than saving 1 or 2% each time you remortgage more so avioding this economic mess & prob the next two as & your recession covered for TERM, no rate hikes for you & as I said BETTER than renting which for most tenants yearly goes up a little£100,000 asset, £50000 borrowed = £324.50 for termwhat will £325 buy/rent in 2 months, 2 years ? then think 10 years from now........SECURITY at a decent rate is what you all need to look at for the long term...

5.89 may seem cheap over 30 years, over the next 3 it's going to be criminally expensive.

arfster;3479035

Interest rates are falling, so this will be a good deal over the next … Interest rates are falling, so this will be a good deal over the next year or so. However, the longer term norm for interest rates in the UK is a lot higher than it is now, so it'll rise up beyond that, back to something normal like base 5% (ie 6% for this) in 3 years probably.Personally I'd be looking to go onto 5yr or even 10yr fixed rate early next year, when BoE base rate has fallen to 2%, 1% or perhaps even lower. There will be some stupendously silly deals around then, and you'll be able to lock into a rate that'll be far lower than the likely average on a tracker.




Fixed rates have nothing much to do with base rates. Even if they to 0% it does not
gurantee low fixed rates. Hope I am wrong as my 10 year fix expires next Aug!

Simon

In addition to their fee, I think you still have legal fees. valuation surveyor, etc , which adds up to a fair chunk.

Supermod

Surveyor fee can be about £200-£600 depending on what you need.
Legal fees will be in the region of £400-£600+vat plus disbursements of approximately £70.
You will need a Local Authority Search priced at £73-£170.
Water and Drainage search at approx £50.
Dont forget stamp duty for £175000+.

sgrech;3479101

Fixed rates have nothing much to do with base rates. Even if they to 0% … Fixed rates have nothing much to do with base rates. Even if they to 0% it does not gurantee low fixed rates. Hope I am wrong as my 10 year fix expires next Aug!



Everything is related to base rates .... or at least predictions of base rates :-) At present this is fubar because libor & base rates have diverged, but give it 6 months......

Either way, next August you're going to get some seriously cheap deals because we'll be in the middle of a really nasty recession with near-zero or even negative inflation. BoE governor actually suggested 0% base rates might be a possibility.
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