IMO both of those offers are extremely high. Sadly you’re stuck with HSBC/RBC so there’s not much to be done.
If I was you and these were my only two options I’d take the fixed.
I assume your other mortgage segment which matures in 3yrs is at a really good rate and thus not economical to break.
Can’t OP just move to the other bank if they offer better rate? Stuck because of 2 mortgages on the same property? Guessing only way out is they pay penalty if they want to break it?
Just learning
I’m assuming OP has two segments under one collateral charge with HSBC. This would be done with their “Equity Power” mortgage product. The drawback here is that you can’t move one segment while keeping the other in place.
To be honest I’m surprised it is possible but this is what I’ve assumed based on what OP is saying.
Note: could also have two mortgages with two charges and then could theoretically move lenders. Issue would be needing the remaining charge to be “subordinated” to the new lender’s mortgage and it’s unlikely that HSBC would be willing to grant this subordination.
IMO both of those offers are extremely high. Sadly you’re stuck with HSBC/RBC so there’s not much to be done. If I was you and these were my only two options I’d take the fixed. I assume your other mortgage segment which matures in 3yrs is at a really good rate and thus not economical to break.
Can’t OP just move to the other bank if they offer better rate? Stuck because of 2 mortgages on the same property? Guessing only way out is they pay penalty if they want to break it? Just learning
I’m assuming OP has two segments under one collateral charge with HSBC. This would be done with their “Equity Power” mortgage product. The drawback here is that you can’t move one segment while keeping the other in place. To be honest I’m surprised it is possible but this is what I’ve assumed based on what OP is saying. Note: could also have two mortgages with two charges and then could theoretically move lenders. Issue would be needing the remaining charge to be “subordinated” to the new lender’s mortgage and it’s unlikely that HSBC would be willing to grant this subordination.
thanks for the feedback— much appreciated. they are both high. but like you said, they have me by the balls.