Variable-rate tracker HSBC mortgages "very competitive"

Date:Monday 10th August 2009
Author: Susanna Kavka

There is currently a range of "very competitive" variable-rate tracker HSBC mortgages on offer.

This is the opinion of Ray Boulger from UK mortgage broker John Charcol, who said that there is a "strong argument" for considering a tracker mortgage over a fixed-rate loan.

Those keen to do so should look into securing a loan which permits them to switch to a fixed-rate product if and when they want to, he said.

He added: "This means either buying a tracker with no, or low, early repayment charges (ERC) or one which offers a droplock option, allowing a switch to a fix without incurring the ERC."

According to the expert, HSBC is currently offering good value variable-rate mortgages with no ERCs, with rates starting at the base rate plus 2.24 per cent for loan-to-values of up to 60 per cent.

Meanwhile, the best examples of a droplock home loan at present are from Nationwide, Mr Boulger said.

Recently, Young Group chief executive officer Neil Young warned buy-to-let investors against being complacent and failing to review their mortgage options.