For homeowners nearing the end of a fixed-rate mortgage, selecting the right product transfer can provide financial stability and flexibility. This case highlights how we assisted homeowners in Church Crookham to secure a tailored 2-year fixed-rate product transfer with HSBC, aligning with their plans for potential future changes.
The Scenario
The homeowners were approaching the end of their fixed-rate product with HSBC. While they were content with their current lender, they wanted to keep their options open, as they were considering selling the property in two years. Their priorities included:
- 2-Year Fixed Rate: They preferred a short-term fixed product to maintain flexibility for a potential sale.
- Remain with the Same Lender: They sought to avoid the time and complexity of switching lenders, including full underwriting, additional documentation, and a valuation.
- Fee-Free Product: They favoured a fee-free product unless a product with fees would result in clear savings over the 2-year period.
Additionally, the homeowners planned to review their protection needs closer to the completion of the transfer.
The Challenge
The key challenges included:
- Maintaining Flexibility: The product needed to align with their plans to potentially sell the property in two years.
- Minimising Hassle: Remaining with HSBC was crucial to avoiding the complexities of switching lenders.
- Affordability: The product needed to balance competitive rates with no or minimal fees to optimise savings during the fixed period.
Find out Your Options
The Process
Step 1: Understanding the Customers’ Needs
We started by discussing their financial situation, goals, and future plans, confirming their preference for a 2-year fixed-rate product and a seamless process with their current lender.
Step 2: Reviewing HSBC’s Options
We analysed HSBC’s product transfer options, focusing on 2-year fixed-rate products that offered competitive rates and fee structures. A fee-free product was prioritised unless an option with fees provided demonstrable savings over the fixed period.
Step 3: Simplifying the Application
As this was a product transfer, we eliminated the need for full underwriting, valuations, or legal involvement. Our streamlined approach ensured a smooth process while meeting their timeline.
The Solution
HSBC offered a 2-year fixed-rate product that met the customers’ needs:
- Loan Amount: £315,000
- Product Type: Capital Repayment Mortgage
- Rate: Fixed for 2 years
- Fee Structure: Fee-free product chosen for optimal savings during the term
Why This Solution Worked
- Flexibility: The 2-year fixed rate aligned perfectly with their plans to reassess their situation in two years.
- Convenience: Staying with HSBC avoided the need for additional documentation, valuations, and legal processes.
- Affordable: The fee-free product provided predictable monthly payments without increasing upfront costs.
The Outcome
The homeowners successfully transitioned to a new 2-year fixed-rate product, providing the stability they needed while maintaining flexibility for potential future changes. Key benefits included:
- Predictable Payments: Fixed payments ensured financial stability over the next two years.
- Streamlined Process: The product transfer was completed quickly and efficiently, avoiding unnecessary complications.
- Future Flexibility: The short-term product aligned with their potential plans to sell the property.
Closing Thoughts
When navigating product transfers, it’s important to balance stability, flexibility, and convenience. This case demonstrates how a tailored approach can provide financial confidence while keeping future options open.
If you’re approaching the end of your mortgage term and considering a product transfer, we’re here to help. Contact us today to explore options that align with your financial goals and plans.
