Should I accept the HSBC standard variable rate mortgage?
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Written on: 14.01.2010 [23:36]
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Ruiz
Ruiz
Topic creator
Posts: 2
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I have been on a fixed rate mortgage for the past 3 years and my rate ends soon. I went in to speak things over with an advisor and the guy offered me 5.39% fixed rate for 3 years with an arrangement fee. I thought this was ok until I saw that the HSBC standard variable rate is only around 4% shouldn’t I just let my mortgage go automatically in to the standard variable rate. What are the advantages of paying nearly 2% more for the fixed rate and having to pay god knows how much of an arrangement fee. |
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Written on: 16.01.2010 [07:14]
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Manjula
Manjula
Posts: 2
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But think about it in the long run, this is a rate for three years, who knows where the rate will be in three years. Fixed rates are a risk in this situation so I always go back to the good saying, better to be safe than sorry. They say that by the end of 2010 the economy should be on the rise again. Who is to say that it wont pass 5.39% and then you will be winning. But again it is a personal choice and one you will have to think long and hard about. |
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Written on: 17.01.2010 [19:29]
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Sylvain
Sylvain
Posts: 5
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Plus you have to think whether you will move or not in the next few years. If it is a set bet that you will stay then the fixed rate is better however if you are planning to move I would go for the variable rate. |
