Twonky Posted November 10, 2011 Share Posted November 10, 2011 Our fixed term mortgage with the HSBC finishes soon - (we fixed at 6% for five years just before the world's economy disappeared up its own arse, so that was nice, especially since we paid a £1000 fee for the privilege of fixing, having first taken independent financial advice. My fucking budgie could give better advice than that, and my budgie died twenty years ago.) - anyway, we have been told that we will thereafter revert to their standard variable rate, which is 3.9%. Now admittedly 3.9% is better than 6%, but given that the base rate is 0.5% that still seems like a pretty tidy mark-up for the bank (3.4% above base). Two questions: 1) Is it worth me taking this up with the HSBC and seeing if I can get a better offer, or will it just waste an hour of my time talking to a chap in Bombay who can't pronounce my name? (They've given me a phone number to ring if I want to discuss fixing the rate again, there is no option to, y'know, actually speak to a real human being at any of the HSBC branches on the island.) and 2) Is it worth shopping around at all? We're currently at a LTV ratio of around 80% (depending on what the house gets valued at) so probably not an immensely attractive proposition for a mortgage with a different bank. I'll probably explore both options anyway, but would be nice if any MF-ers can give me a pointer or two as to what to expect. Cheers! Link to comment Share on other sites More sharing options...
MickyBlue Posted November 10, 2011 Share Posted November 10, 2011 There are clearly lots of factors involved, but 3.4% margin does seem high. For that sort of LTV, there are other lenders on the Island offering a margin below 3% (on trackers). Have a look at their web sites - most publish their current offers. It does seem that when offers come to an end, existing lenders don't by default try very hard to keep their customers. I don't have any experience with HSBC, but talking to them has to be worth a try - it would certainly save some of the hassle involved in moving between lenders. Link to comment Share on other sites More sharing options...
mojomonkey Posted November 10, 2011 Share Posted November 10, 2011 I wouldn’t dream of offering financial advice but obviously it is always worth doing your homework and seeing what is the best deal for your situation. What I can say it that I transferred my mortgage to HSBC after my fixed term with Halifax ended earlier this year. Just go into the Douglas branch and ask to speak to someone about mortgages. There will probably be someone who can talk to you there and then, but if not the worst you’ll have to do is make an appointment to see someone. I never had to speak to anyone in a call centre, either based over here or in India. Link to comment Share on other sites More sharing options...
Twonky Posted November 10, 2011 Author Share Posted November 10, 2011 I wouldn’t dream of offering financial advice but obviously it is always worth doing your homework and seeing what is the best deal for your situation. What I can say it that I transferred my mortgage to HSBC after my fixed term with Halifax ended earlier this year. Did you get better than 3.9%? According to HSBC's website if you're a first time buyer with a deposit the size of Berlusconi's prostitute invoice, you can get down to 2.9%. Link to comment Share on other sites More sharing options...
mojomonkey Posted November 10, 2011 Share Posted November 10, 2011 I'm on a variable rate that is 1.99% above base rate (so 2.49% at the moment) but that I think that deal ended just after got it and my LTV was better than 70%. I did my homework before going to HSBC but I do also bank with them so it made things a little easier. Link to comment Share on other sites More sharing options...
thebees Posted November 10, 2011 Share Posted November 10, 2011 Financial advisers should be lined up and shot. They cannot be trusted and nor can you rely on the FSC or IOMOFT to sort things when they go wrong. Put yer money under yer mattress & hide in a bunker..or something like that. Link to comment Share on other sites More sharing options...
manshimajin Posted November 10, 2011 Share Posted November 10, 2011 We have a tracker with HSBC 1% over BoE rate which we have to decide to refinance or pay off in a couple of years. Hate to think what it would be if renegotiated. I did have a chat with HSBC and they tried to tell me that I should feel eternally grateful if they deign to offer a new loan. I took the opportunity to point out to them that it was the other way round - that they should be fawningly grateful if I decide to keep my business with them. They need clients, they need deposits and they need secure lending and clients who are reliable with payments. This is even more so given the problems they have revealed that they are having with their US loans. Link to comment Share on other sites More sharing options...
G_Kelly Posted November 10, 2011 Share Posted November 10, 2011 We have a tracker with HSBC 1% over BoE rate which we have to decide to refinance or pay off in a couple of years. Hate to think what it would be if renegotiated. I did have a chat with HSBC and they tried to tell me that I should feel eternally grateful if they deign to offer a new loan. I took the opportunity to point out to them that it was the other way round - that they should be fawningly grateful if I decide to keep my business with them. They need clients, they need deposits and they need secure lending and clients who are reliable with payments. This is even more so given the problems they have revealed that they are having with their US loans. and what was his reply to that Link to comment Share on other sites More sharing options...
Monkey boy Posted November 10, 2011 Share Posted November 10, 2011 Go & dig your budgie up mate. Link to comment Share on other sites More sharing options...
Gladys Posted November 11, 2011 Share Posted November 11, 2011 I would always try to fix my mortgage, for no other reason than certainty having experienced the galloping interest rates of the late 80s early 90s. Then it is a case of shopping around, but given the current climate it may be better the devil you know and the risk of what seems to be a great offer being withdrawn when you have burned your bridges with your existing lender. In the current climate I would be ultra conservative and would not go interest rate chasing, but rather a reliable fix; so what if you fixed at the wrong time before, at least you knew how much your mortgage would be each month. The other caution is loan to value as this seems to be where the sting is at the moment. So if your mortgage is quite high do be careful of what LTV is imposed and also how 'value' is assessed. I am not a financial adviser just passing on my personal experience. Link to comment Share on other sites More sharing options...
manxman8180 Posted November 11, 2011 Share Posted November 11, 2011 I did a small re-finance about 4 years ago on my Barclays mortgage and got a variable rate of 0.5% above base. Don't quite know how I managed that, because apparently it was pulled about 4 days after someone had dreamt it up, when their 'superior' spotted it. I guess that the kind soul wasn't gainfully employed for much longer after that. Unfortunately, it is only a wee amount compared to the bulk of my mortgage which is fixed at the moment at 4.9% I think. Link to comment Share on other sites More sharing options...
carbon selector Posted November 11, 2011 Share Posted November 11, 2011 I had to remortage my house and went to a financial advisor. I was told they could arrange a remortgage and I asked which bank would they use. They said they could use any bank on the Island, and after a short pause .."except HSBC". I didn't ask why but that was good enough for me. I walked up the road to the HSBC and my mortage was more-or-less arranged there and then (actually just before the so-called 'credit crunch' - phew!) . I was pretty desperate to be honest and didn't shop around but the Financial Advisors advice turned out to be the best I have ever had. The rate was variable and it looked pretty good to me, obviously right now I'm pretty happy. Link to comment Share on other sites More sharing options...
P.K. Posted November 11, 2011 Share Posted November 11, 2011 I have a friend who is a financial advisor - and we're still friends! They're not all bad. This site has some helpful no-nonsense advice and guides http://www.moneysavingexpert.com/mortgages/ Their newsletter sometimes comes up with a winner as well. Link to comment Share on other sites More sharing options...
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