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Noob question regarding mortgages?
PSpirine - 26/1/11 at 06:53 PM

Evening all,

I'm fairly new to the whole housebuying thing - bought my first house in February last year.

I got a £100k mortgage (now outstanding down to £97k) with HSBC - it's a variable lifetime tracker, and is at 2.29% + Base

With my LTV, at the moment HSBC are offering 1.99% + Base until the 6th of february with No Fee.

Is it possible for me to request to effectively take out this new mortgage under offer to replace my old one? My current one has no exit fee. As this one has no fee I cannot see why I *wouldn't* want to transfer to it as all it does is take my interest down by .2% (which might help offset the impending base rate increases!)

Just thought I'd check whether this is possible or done before I go to a branch (none local!)

Cheers,

Pavs

RAYLEE29 - 26/1/11 at 07:06 PM

If im reading it right and they are both with the same company should be a simple phone call to arrange it.
just make sure you dont have to pay any charges which might negate the advantage of the savings with the lower rate.
also check the tie ins and get outs in case you want to move it again.
Ray
ps no expert just changed a few times with the same provider

[Edited on 26/1/11 by RAYLEE29]

blakep82 - 26/1/11 at 07:09 PM

yeah, if there's no arrangement fee on the new one, and no 'temination fee' or early redemption charge (ERC) as i know them, on the current one, a simple phone call will get it sorted for you. you'll probs need some papers sent out to sign, but thats it.

as said above, check the terms on the new rate (ERC for example, if you're tied into it for say 3 years, if the base rate ever starts shooting up real fast, you'll want to get out and onto a fixed rate, which might be problems if you've got charges

pewe - 26/1/11 at 08:27 PM

Just make sure you have it all in writing before you go ahead.
Also record any telephone conversations and/or meeting by taking copious notes.
Don't ask me how I know but for what it's worth never, ever trust Barclays!!!
Cheers, Pewe

wilkingj - 26/1/11 at 08:46 PM

quote:
Originally posted by pewe
Just make sure you have it all in writing before you go ahead.
Also record any telephone conversations and/or meeting by taking copious notes.
Don't ask me how I know but for what it's worth never, ever trust Barclays!!!
Cheers, Pewe



Dead Right on that. Record it ALL. They will stitch you up if you dont.
I used to have a customer who used to be a secretary, and she recorded the phone calls in shorthand. Its unnerving when you are quoted word for word... Make sure you protect yourself.

Beware of any change to the rate, ie is it an introductory rate etc... you could end up worse than before.
Just check it out VERY carefully as its a lot of money either way, and over a long period.

Remember the Grass is not always greener on the other side of the fence

PSpirine - 26/1/11 at 10:36 PM

quote:
Originally posted by wilkingj


Remember the Grass is not always greener on the other side of the fence



Hey at least I have a fence!


Thanks for the responses chaps. I've checked all the terms - it's not an introdcutory rate, it's exactly the same terms and conditions as my own mortgage, and I've been through that one with a magnifying glass!!! I have however found that the only thing they require is to have a fee-paying current account with them. Just need to work out whether that's enough to swing it or not!

And unfortunately I too know all about recording stuff, but have got pretty good at it now..


Ta,
Pavs

morcus - 27/1/11 at 12:26 AM

Recording phone calls in general can save you alot of hassle. It's very hard to argue with a recording of your own voice, and it's useful to have your own recording as companies will rarely share theirs with out it going to court.

speed8 - 27/1/11 at 01:58 AM

quote:
Originally posted by PSpirine
quote:
Originally posted by wilkingj


Remember the Grass is not always greener on the other side of the fence



Hey at least I have a fence!


Thanks for the responses chaps. I've checked all the terms - it's not an introdcutory rate, it's exactly the same terms and conditions as my own mortgage, and I've been through that one with a magnifying glass!!! I have however found that the only thing they require is to have a fee-paying current account with them. Just need to work out whether that's enough to swing it or not!

And unfortunately I too know all about recording stuff, but have got pretty good at it now..


Ta,
Pavs


The fee paying account part could be a deal breaker as, assuming you have a 25 year mortgage, you will only save about £10/month on the payments but all the fee paying accounts are about £15-20/month.