How To Switch Mortgage Deal | Switching Rates – HSBC UK (2024)

FAQs

How To Switch Mortgage Deal | Switching Rates – HSBC UK? ›

You may be able to switch to an interest-only mortgage. We'll need to carry out our usual checks. You'll need to have a suitable repayment plan in place, so you pay back what you borrowed when your mortgage ends. Find out more about your mortgage payment choices.

You may be able to switch to an interest-only mortgage. We'll need to carry out our usual checks. You'll need to have a suitable repayment plan in place, so you pay back what you borrowed when your mortgage ends. Find out more about your mortgage payment choices.

You don't have to change mortgage lender if you want to remortgage. You can simply switch deals with your current provider, known as a mortgage transfer, which is usually quicker and less hassle. There's a few situations where it's best to stay put, or at least wait until the timing is right.

Most banks and building societies allow you to switch mortgage rates online or over the phone (although you will not receive advice if you switch online and may not do so if you switch over the phone). As your current lender already has your details on file, a credit check is often not needed.

Your lender will want to reassess what they've offered you. Unless there's been a significant change since the mortgage offer, amending it could be a straightforward process. It's unlikely to require a new application form, credit search or additional verification, for example.

When you transfer your current HSBC rate from one property to another. You can do this when: you sell your property and buy another at the same time • the sale and purchase don't happen on the same day. You have up to 6 months to apply to use the existing rate on a new property.

Yes, you can change your mortgage from repayment to interest-only. Depending on your situation at the time, you can apply to remortgage onto an interest-only deal. You'll need to check when your current deal ends if you're on a fixed rate, as you could be hit with big fees for changing your mortgage.

Typically, the penalty is up to three months of interest payments on the amount owing or the interest rate differential. (This is the difference between the rate you are currently paying and the financial institution's current posted rate.)

Can I change my interest rate without refinancing? ›

The simple answer is yes, your lender may agree to lower your interest rate without a refinance.

Porting a mortgage essentially means transferring your mortgage to a new house. This will include the current terms of your loan, such as the interest rate and payment schedule. But you can't simply take your loan and plop it onto your new home.

Refinancing your home mortgage can make sense under different scenarios. You may be able to get a significantly lower mortgage rate, reducing your monthly payments and freeing up cash for other purposes. You may also be able to shorten the term of your loan, allowing you to pay it off sooner.

Generally, it takes around four to eight weeks to remortgage. This is the typical time it takes after the date you apply but it isn't always guaranteed. If you have delays along the way, this can change the time frame and make it take longer.

An Early Repayment Charge (ERC) is a charge you may have to pay if you repay the whole or part of your mortgage early (which includes when you move to a different HSBC product or move to a different lender) during a certain period.

Yes. The type of home loan you have – variable or fixed rate interest home loan – doesn't affect whether you can choose to make interest payments only. However, if you want an interest-only loan, you need to set that up before locking in your interest rate, as you can't do it mid-term.

To put it simply, an interest-only mortgage is when you only pay interest the first several years of the loan — making your monthly payments lower when you first start making mortgage payments.

Lenders that subscribe to the charter may permit a six-month transition to an interest-only mortgage without an affordability assessment. This means during this period, you're only responsible for the interest portion of your mortgage, potentially lowering your monthly outgoings significantly.

How long can you stay on an interest only mortgage? A typical interest only mortgage lasts between five and 25 years. It's possible to remortgage to a new deal at any time, which is often a good idea if interest rates have changed.