Reply to: HSBC 5 Year Mortgage - Fixed 1.99% !!!

[MarillionFan]

HSBC launch the lowest ever 5 year fixed rate mortgage in history on Monday. Incredibly good deal for a 5 year fix.

HSBC launches first sub-2% five-year fixed mortgage | Money | The Guardian

So I headed into the local branch of HSBC this morning to have a chat, and lo and behold, they didn't know a bloody thing about it!

So great marketing HSBC, you tell the world, but not your own staff.

Wasn't that great.

It has a limit of 500k. I wanted to borrow 650K and so they split it over two mortgage applications with two different rates. Overpayment was 20% per month(of your monthly payment), which you had to do each month, so therefore no bulk overpay. Only give you interest only, if you join their bank and pay all your wages in, and then only if you put down 40% and have a separate repayment vehicle, which was not your house.

[MarillionFan]

Yep, the headline rate is to catch millionaires who play the system like MF

FTFY

[fullyautomatix]

^This

Like the car leases, brand new Aston Martin for £400/month*



£40K deposit required, 36 payments of £400 per month, plus final payment of £40K.

To be fair, most car sales happen to such dubious marketing. Go outside a BMW Mini sales room and there is a very large 199 per rmonth advertisement to entice the muppets who just think that suddenly they are able to afford a Mini. What they dont realise is that if they could afford it, they would have had the cash stashed from saving that amount every month for the past few years.

[DimPrawn]

Yep, the headline rate is to catch idiots like MF

^This

Like the car leases, brand new Aston Martin for £400/month*



£40K deposit required, 36 payments of £400 per month, plus final payment of £40K.

[Unix]

'Market leading' 1.09pc mortgage costs almost £200 more than other deals - Telegraph

Yep, the headline rate is to catch idiots like MF

[mudskipper]

Is there an application fee though? We have small mortgage so the fee usually outweighs the savings on interest. We can access good rates though due to having small LTV.

'Market leading' 1.09pc mortgage costs almost £200 more than other deals - Telegraph

[TykeMerc]

Is there an application fee though? We have small mortgage so the fee usually outweighs the savings on interest. We can access good rates though due to having small LTV.

Very true, I've been looking at a few options recently and unless I go for a considerably larger mortgage the rate benefits are clobbered by the arrangement fees which all seem to be significant. I don't suppose any of us should be surprised the banks want to get a margin in somehow and fees is it when rates are so low.

[Unix]

Is there an application fee though? We have small mortgage so the fee usually outweighs the savings on interest. We can access good rates though due to having small LTV.

[MarillionFan]

Mortgage rates fall even further for big deposit borrowers* | Daily Mail Online

Now 2 year deal at 1.09%. Lowest ever.

http://www.dailymail.co.uk/money/mor...gage-1-68.html

3 Year. 1.68%. Lowest ever

[yasockie]

The rates are negative in Denmark already - they are literally paying people to borrow money.
If the rate are going to hover around 0 or less, then 1.99% is not such a great deal anymore...

[Mark McBurney@CMME]

It's a fantastic rate - the lowest ever 5yr rate I think.

It's probably one that you may struggle or find difficult to achieve as a contractor, as HSBC will work from 3yrs of Limited Company accounts, rather than contract value, and I believe you will have to go direct (or possibly through Countrywide, who are not the best with contractors, judging from previous clients' feedback).

The good thing if you can't currently access this though is that this may well prompt one or two other lenders to follow suit with rates close to this, possibly those with criteria flexible to contractors too.

[vetran]

Santander have been doing 2.99 and less for ages, combine with 123 account giving 1% cashback then 1.99 for 5 years has been around for ages assuming 123 stays as is.

Found Santander knew what they were talking about.

oops - Doh ignore me at 4 glasses in the cups.

[minestrone]

I shall be enquiring about this tomorrow.

[MarillionFan]

If it's 1% of interest it's cheap. If it's 1% of the total monthly payment and you have less than a year to go then

[eek]

No it doesn't.

Where the hell is Sasguru when you need him? Cretin Watch needs to be restarted.

If it's 1% of interest it's cheap. If it's 1% of the total monthly payment and you have less than a year to go then