Mortgage rates

[transatlantic]

I've been looking at mortgage rates lately as I'm trying to buy my first house (wahoo!), but the one thing that I find a little odd is the booking fee.

Take for example, these rates from HSBC :

5 year fixed - £576 with an up front fee of £999
5 year fixed saver - £589 with no fee

£589 - £576 = £13
5 * 12 * £13 = £780

So it's still cheaper to go the no fee route? ... what am I missing?

 

[MMUK]

You'll probably find the interest rates after the 5yr period will differ wildly......

 

[Rorschach]

After the 5 years you can go with someone else, so that's not a problem. The booking fee is probably for a mortgage that is for people with a lower credit rating. It may or may not be available to you.

 

[transatlantic]

You'll probably find the interest rates after the 5yr period will differ wildly......

It is my understanding though that you don't really need to pay attention to the rate they quote after the 5 year period, as the figure they give now could be completely different in 5 years, so what might look good now, could be drastically different in 5 years? And that before the 5 year period ends, you would be looking to renew another plan anyway?

 

[NikNak]

have you asked them if you're missing something...? :?


or.... have a looksy here....

https://www.moneyadviceservice.org.uk/e ... t-a-glance

https://www.moneysupermarket.com/mortga ... explained/

 

[transatlantic]

have you asked them if you're missing something...? :?

I haven't no, but have an appointment on Tuesday, so will ask then. Just thought I'd ask here to get any non biast info

 

[lurker]

Hands up those who remember paying 17% :roll:

 

[Homers double]

Hands up those who remember paying 17% :roll:

Don't even go there, I was a brickie back then, couldn't get any work as the whole building industry was on its knees.
I had to sell my first house for £19.000 less than I paid for it and take out a personal loan over 10 yrs to pay it off.

 

[Bod]

Hands up those who remember paying 17% :roll:

Yup and it hurt!
Thankfully only for a few weeks before it started to come down.
The upside to those interest rates were the endowment policy, made some great returns.

Bod

 

[DiscoStu]

Which Mortgage is a very good service for independent mortgage advice. They do charge a fee if you do take out a mortgage but they can offer very good advice, they are whole of market and truest independent. A lot of comparison sites are not whole of market. I went with which having done a lot of research to see if they could find me a better deal. I'd thought I'd thrashed the market out and they couldn't find a better deal, anyway they saved me £300 a month!


Sent from my iPhone using Tapatalk

 

[Racers]

Hands up those who remember paying 17% :roll:

Me too!

Ours eventualy came down to less than half the first few payments.

Pete