Dodge bank fees by remortgaging after 1 month?
Discussion
Today I popped into the bank to arrange a mortgage. I had a particular product in mind when I went in however it turned out that it was withdrawn from offer two days ago. The alternatives were (both HSBC lifetime trackers):
(1) 2.54% + £1499 booking fee + £425 other costs
(2) 2.99% fee free
I enquired whether I could opt for the fee free mortgage and then swap to the lower rate offering straight away. I was told this was possible, and that it was best to do so after the first instalment had been paid.
So it would seem that if I were to take the fee-free option then swap after one month I can circumvent the £425 costs (valuation + completion fee).
Apart from the possibility that the lower rate option ceases to be available, what's the catch? The website states no tie-in period, what have I missed?
(1) 2.54% + £1499 booking fee + £425 other costs
(2) 2.99% fee free
I enquired whether I could opt for the fee free mortgage and then swap to the lower rate offering straight away. I was told this was possible, and that it was best to do so after the first instalment had been paid.
So it would seem that if I were to take the fee-free option then swap after one month I can circumvent the £425 costs (valuation + completion fee).
Apart from the possibility that the lower rate option ceases to be available, what's the catch? The website states no tie-in period, what have I missed?
I'd be surprised if they didn't have a clause in place somewhere in the T&C's to prevent this......but if they said you can do it then may be you can.
I'd speak to a few other members of staff to confirm if they all concur that it can be done or you might find yourself lumbered on the 2.99% rate.......
I'd speak to a few other members of staff to confirm if they all concur that it can be done or you might find yourself lumbered on the 2.99% rate.......
rfoster said:
What part makes you think that you'd dodge the fees by switching after 1 month? I suspect that those fees would probably still stand.
The £425 is for the valuation and completion fee, neither of which would be required (so I was told). The £1499 booking fee would still be payable.Gassing Station | Finance | Top of Page | What's New | My Stuff


