Mammon Posted September 2, 2009 Share Posted September 2, 2009 HSBC has launched a 1.99% mortgage on a two-year discount rate - available to customers with a deposit of 40%.Other mortgages within its new range include a two-year discount mortgage for customers with at least a 25% deposit at an interest rate of 2.49%. Both discount mortgages have arrangement fees of £1,199 and are discounted from HSBC standard variable rate - currently 3.94%. It also has a three-year discount rate at 3.89% and a 90% LTV, available for purchasers only. As well as a three-year fixed rate mortgage, at 4.19% with a fee of £999 and a maximum LTV of 60%. Martijn van der Heijden, head of mortgages at HSBC says: “Across the market lenders’ standard variable rates are at an all time low, as a result we are launching our lowest ever mortgage rate – 1.99% - to appeal to remortgaging homeowners. We have also made our higher loan to value mortgages even better value to support the increasing number of home purchasers either move, or step on the housing ladder for the first time.†HSBC has pledged to double its 2007 level of mortgage lending this year and has made £15bn available to customers. It was the largest net mortgage lender in the UK in the first half of 2009, with £4.2bn in new lending. http://www.mortgagestrategy.co.uk/cgi-bin/...h=401&f=402 Some good deals i think Quote Link to comment Share on other sites More sharing options...
IDN Posted September 2, 2009 Share Posted September 2, 2009 the best deals are ones which require a hefty deposit - i think that excludes a lot of people Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted September 2, 2009 Share Posted September 2, 2009 I think you've forgotten to use the sarcasm emoticon. 40% deposit! Quote Link to comment Share on other sites More sharing options...
loginandtonic Posted September 2, 2009 Share Posted September 2, 2009 40 % deposit, no worries, just do a cash advance on the credit card innit Quote Link to comment Share on other sites More sharing options...
lulu Posted September 2, 2009 Share Posted September 2, 2009 40 % deposit, no worries, just do a cash advance on the credit card innit No problem, when prices half in the next 6 months I will be there! Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted September 2, 2009 Share Posted September 2, 2009 I wonder what the figure actually is if you factor in the 'arrangement fee', including the loss of interest on that money if it had been sitting in a typical cash ISA for the two years. When all's said and done I'd guess that it only works out at about half a percent below a typical deal on an average-sized mortgage. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted September 2, 2009 Share Posted September 2, 2009 I read that as....we want mugs with lots of cash to get a mortgage with us so when in two years tim you have lost 30% of the value of your home we're quids in. Quote Link to comment Share on other sites More sharing options...
I'M WITH STUPID Posted September 2, 2009 Share Posted September 2, 2009 this time last year HSBC were offering 0.99% above base trackers with a £700 app fee, again these were strictly for those remortaging with at least 40% equity. HSBC are only interested in uber prime lending Quote Link to comment Share on other sites More sharing options...
Meerkat Posted September 2, 2009 Share Posted September 2, 2009 Some good deals i think What if all deals had always been of that kind - 40% deposit. Even your current mortgage would have been much lower Quote Link to comment Share on other sites More sharing options...
rw42 Posted September 2, 2009 Share Posted September 2, 2009 Hang on a f*cking minute. DISCOUNTED rate? Base rate is 0.5%. Current rate for them is 3.94%, this is now discounted to 1.99%. So their bank base rate is 3.54% above the BOE rate, and this is considered a good offer???? BOE rate only needs to go back to 3/4% before this looks like a decidedly sh!tty deal. Quote Link to comment Share on other sites More sharing options...
twatmangle Posted September 2, 2009 Share Posted September 2, 2009 I think you've forgotten to use the sarcasm emoticon.40% deposit! I bet those on here who actually have >40% deposits find it equally amusing. But in a good way. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted September 2, 2009 Share Posted September 2, 2009 Some good deals i think Notice that it's a TRACKER. So as long as interest rates don't go up it's not a bad deal. Quote Link to comment Share on other sites More sharing options...
Meerkat Posted September 2, 2009 Share Posted September 2, 2009 Hang on a f*cking minute.DISCOUNTED rate? Base rate is 0.5%. Current rate for them is 3.94%, this is now discounted to 1.99%. So their bank base rate is 3.54% above the BOE rate, and this is considered a good offer???? BOE rate only needs to go back to 3/4% before this looks like a decidedly sh!tty deal. Maybe you simply meant that the BoE as such only needs to go ? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 2, 2009 Share Posted September 2, 2009 the best deals are ones which require a hefty deposit - i think that excludes a lot of people Yes but it's all about the headlines and proving they are willing to offer good "deals". The bankers are just copying Labour policy announcements. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted September 2, 2009 Share Posted September 2, 2009 Yes but it's all about the headlines and proving they are willing to offer good "deals".The bankers are just copying Labour policy announcements. Yes, its the "tracker" recovereh! Quote Link to comment Share on other sites More sharing options...
ReadingRabbit Posted September 2, 2009 Share Posted September 2, 2009 (edited) Reformatted for proper reading: HSBC has launched a 1.99% mortgage on a two-year discount rate - available to customers with a deposit of 40%. Just saving for 10% deposit (of current average house price) is a big challenge, how many years will it take for an average person to save this 40%? Edited September 2, 2009 by ReadingRabbit Quote Link to comment Share on other sites More sharing options...
Sonic the Hedge Fund Posted September 2, 2009 Share Posted September 2, 2009 Another no risk to the lender deal This is the key point IMO. The interest rate is a loss leader; what these lenders really want is the leverage and security inherent in large deposits. Now why would HSBC (and indeed many a BSoc) be so keen on borrowers with lowest LTV, I wonder? Yet many will still portray this as a bullish signal. Quote Link to comment Share on other sites More sharing options...
Mr Punter Posted September 2, 2009 Share Posted September 2, 2009 I see Britannia are offering a 10 year fix, 10% deposit at 6.3% APR. Not cheap, but a hedge for those who expect IRs to rocket. They also do a 15 year at 7.3%. I think the long term rates will come down even more over the next year or so. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted September 2, 2009 Share Posted September 2, 2009 Hang on a f*cking minute.DISCOUNTED rate? Base rate is 0.5%. Current rate for them is 3.94%, this is now discounted to 1.99%. So their bank base rate is 3.54% above the BOE rate, and this is considered a good offer???? BOE rate only needs to go back to 3/4% before this looks like a decidedly sh!tty deal. Quite and this is what happens in a market where the competition gets erradicated (which it has been)..... the remaining banks , many state owned , are simply loading up the margin to pay off their bad debts, safe in the knowledge that the good old UK taxpayer has nowhere else to go... so unless you missed it... you end up paying for the debts the govt took on through tax and then paying again to further prop up the banks through an obscene margin on their products. Whilst those with no debt clearly avoid this, for the majority of people they'll be paying for this debalcle twice... amusingly though.. the ones most badly affected by this (which has a lot of its roots in labours financial mismanagement) will happily trot down to the voting pool and vote labour again. Quote Link to comment Share on other sites More sharing options...
Jie Bie Posted September 2, 2009 Share Posted September 2, 2009 Reformatted for proper reading:Just saving for 10% deposit (of current average house price) is a big challenge, how many years will it take for an average person to save this 40%? This deal isn't suitable for the vast majority of FTBs though. The OP mentions the fact that HSBC are now offering 3.89% for 90% LTV mortgages, which would be ok for a two year fix, and excellent for a five year. Only problem is that its a tracker just like the 40% LTV mortgage. I don't know what anyone else thinks, but if you ask me it would be insanity for anyone to take a tracker now unless they can easily afford an extra 4% to go onto the BoE base rate. Quote Link to comment Share on other sites More sharing options...
sbn Posted September 2, 2009 Share Posted September 2, 2009 I bet those on here who actually have >40% deposits find it equally amusing.But in a good way. Well quite!! First I was considering withdrawing it all in fivers and burning it, - but I got a bit guilty about the pollution and all that, so I contemplated composting it for a little while, but now I HAVE A THIRD WAY !!!! Thanks to the wonders of bubblenomics, now I can buy a ridiculously overpriced yet essential asset and watch my "hard saved " dissapear as its price drops like a graffe turd!!! All in a "good way" ! Quote Link to comment Share on other sites More sharing options...
adrianj Posted September 2, 2009 Share Posted September 2, 2009 arrangement fees of £1,199 Quote Link to comment Share on other sites More sharing options...
twatmangle Posted September 2, 2009 Share Posted September 2, 2009 I can see why Sibley enjoys baiting people so much. There's a lot of bitterness around. Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted September 2, 2009 Share Posted September 2, 2009 arrangement fees of £1,199 It's a lark innit. I'm going to run a shop that charges the customers a grand on top of the ticket price of everything. It's the arrangement fee dontcha know. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 2, 2009 Share Posted September 2, 2009 arrangement fees of £1,199 There's a lot of paper work don't ya know. All of those staff don't come cheap. Quote Link to comment Share on other sites More sharing options...
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