Has anyone left their fixed term HSBC mortgage early?

[Chefwifelife]

We’re currently on year 3 of our 5 year fixed term Hsbc mortgage. We pay just over £900 a month and try and overpay a little each month.

Experian credit report is saying we could save over £100-£150 a month if we switched. I know you can switch and pay a fee depending on how much you owe.

Has anyone done this, and if so was it an easy process? I work Monday-Friday 08:3-430 and never seem to be able to get hold of the mortgage team and then they’re closed at weekends.

Many thanks in advance.

The whole point about fixed rate mortgages is that you have heavily penalised fo paying early. You need to look at your contract and see what the early repayment penalty is- I doubt it would be worth it to get a lower rate just for two years

Are penalised not have penalised!

If you log into your HSBC account and choose change rate only, it will tell you what's your early repayment fee is, and what rates they have for you.

It's very straightforward if you stay with the same bank and only charge rate. However, if you go with different bank then you have to go through the entire application process.

Oh @CarrotPuff that’s great info. I didn’t realise that. Thank you.

Two years out the penalty is likely to be several percent of the entire value of your mortgage so unless the mortgage is small it may not be worth it

Money Saving Expert has a Ditch Your Fix? calculator.

www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator/

Normally the Early Repayment Charge for a 5 year fixed rate mortgage is 5% in year 1; 4% in year 2; 3% in yr 3.... Double check though as either HSBC or Santander it's 5% for the term. Your Key Facts document will tell you.