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HSBC Mortgage Review

Read on to find out more about HSBC Mortgages, how they work, and why they could be a good fit for you

A photo of Daniel Sharpe-Szunko, the author

By Daniel Sharpe-Szunko

Published on: 30 October 2022

16 min read

HSBC Mortgage Review

When looking for a new mortgage or remortgage, you might think a bank or building society is your only option (or at least the most obvious one). Believe it or not, there are actually a few other ways to get a mortgage now but approaching your bank might be the easiest choice.

If you bank with HSBC, you could also decide to use them when buying your next or first home. If you are already a loyal customer, you may even be able to get better interest rates than if you went somewhere else and who doesn’t want that? And of course, you don’t need to bank with HSBC to have a HSBC bank mortgage.

In this guide, we’re going to tell you everything you need to know about HSBC mortgages. There is a lot of information out there and it can be hard to dig through it all to find the facts you need – so we’ve done the job for you!

Why choose a HSBC mortgage?

We’ve all noticed prices going up all around us recently, making budgeting and value for money more important than ever. When thinking about mortgages, you need to think about:

  • How much you need to borrow
  • How much is affordable for you to repay every month (include interest as well as the amount you have borrowed)
  • Which lenders are offering the lowest interest rates (this will be key to saving long term)

It is a good idea to shop around, to make sure you are choosing the lender offering the mortgage you need with the lowest rates. HSBC is known for providing their customers with consistently good mortgage rates, though of course the rates they are offering can change over time.

Speaking of getting more for your money, HSBC introduced a new range of cashback mortgages in June 2022. This means you have the chance to get £500 cashback on completion of your mortgage (with selected fixed rate mortgage deals). You can use these extra funds to go towards redecorating or even that perfect new sofa you have had your eye on.

About HSBC

HSBC is one of the UK’s best-known banks, though they surprisingly didn’t start off here. They began over in China (explaining their lesser-known full name The Hong Kong and Shanghai Banking Corporation).

Although HSBC wasn’t founded here in the UK, they were founded by a Scottish man Thomas Sutherland back in 1864. They started off as a local bank in China before growing and expanding across the globe over the following 160 years.

In 1992, they bought the UK’s Midland Bank helping them to grow their presence here in the UK. As Midland Bank, they began offering mortgages to hundreds of UK families and businesses from 1979 onwards before officially rebranding as HSBC.

The HSBC group (HSBC Holdings) that owns the UK HSBC branches also owns other well-known staples in British banking including M&S Bank and First Direct.

[HSBC TIMELINE]

Main areas of business for HSBC include:

  • Current accounts
  • Savings accounts
  • Investments
  • Insurance (Home, Travel & Life)
  • Credit cards
  • Personal loans

It is best to compare what types of mortgage and mortgage terms different lenders are offering, before deciding which is the right one for you. A bit of research can make a big difference in how much you end up paying, so it is key not to rush into this decision.

Below we have all the features of HSBC mortgages, to help you work out whether they are offering the best mortgage for what you need.

Type of productHSBC Mortgages
Repayment optionsHSBC capital and repayment mortgage (you repay both the mortgage loan and the interest every month)  

HSBC interest only mortgage (you repay only the interest on your mortgage every month, the full amount of the mortgage is repaid at the end of the mortgage term)  

HSBC Split term mortgage (the mortgage is split into two separate terms e.g. 10 years interest only then 10 years capital and repayment)
Types of mortgages availableTraditional mortgage or remortgage
HSBC 95% mortgages (for first time buyers)
HSBC Buy to Let mortgages
HSBC Home mover mortgage
HSBC Home Owner loan (additional borrowing)
HSBC premier mortgages (you will need to have a HSBC premier bank account)
Interest rate types availableHSBC fixed rate mortgage (the amount of interest you pay each month will stay the same for a set amount of time, usually 2 or 5 years)  

HSBC term tracker rate mortgage (the amount of interest you pay each month can increase or decrease, if the Bank of England base interest rate changes. This will be for a fixed time period for this mortgage type.)  

HSBC lifetime tracker rate mortgage (this also follows the Bank of England base interest rate, but this will be for the entire mortgage term with this mortgage type.)
Maximum mortgage loan£5,000,000
Maximum mortgage termCapital and repayment: 35 years
Interest only: 25 years
Loan to Value (LTV) options (deposit amount vs overall property value)60% loan to value (deposit 40% of the property value)
70% loan to value (deposit 30% of the property value)
75% loan to value (deposit 25% of the property value)
80% loan to value (deposit 20% of the property value)
85% loan to value (deposit 15% of the property value)
90% loan to value (deposit 10% of the property value)
95% loan to value (deposit 5% of the property value)
Does HSBC have early repayment charges (ERCs)?YES, if you have a fixed rate or discount rate mortgage you may have to pay an early repayment charge (ERC), if you choose to pay off your mortgage or switch your deal early.

Note: HSBC does not charge admin fees for leaving your mortgage early.
Fees charged for HSBC mortgagesThere are several fees you could be charged for your HSBC mortgage including:  

A ‘booking fee’ (product fee) of up to £1,999 will be charged on certain mortgages and can be paid up front or added to the mortgage amount.  
£17 completion fee to cover the transfer of funds into your account or to your solicitor  

£295 fee if HSBC need to arrange a solicitor or conveyancer for you

Most people buying a new home will need to arrange a mortgage first to make this happen – unless you are lucky enough to have come into a significant amount of money!

You might not be sure how much you will be able to borrow for your mortgage, and it is helpful to have a rough guide before you start looking for the right property.

There are a range of HSBC mortgage calculators available on their website, that allow you to check things such as:

  • Standard mortgage calculator HSBC: allows you to check how much you could borrow for a new mortgage or remortgage
  • Mortgage overpayment calculator HSBC: shows you how your HSBC mortgage payments or mortgage term would be affected if you were to overpay on your mortgage (either regularly or as a lump sum)
  • HSBC mortgage repayment calculator: helps you to work out how much your monthly mortgage payments will be
  • Bank of England base rate calculator: allows you to estimate how a HSBC variable mortgage rate’s monthly repayment amounts could be affected by a change in the Bank of England base interest rate.

With the borrowing calculator, you will need to enter some basic details and you should be able to quickly get an idea of the amount you could borrow. You only need to answer 4 questions which are:

  • What your annual income is (before taxes)
  • What a second applicant’s annual income is before tax (if you are applying for a joint mortgage, if not leave this box set to £0)
  • How much the property you want to buy costs (you can estimate this if you haven’t chosen one yet)
  • How much you have saved as a deposit

You can find out more about this topic in our guide ‘How much can I borrow for a mortgage?’

HSBC income multiples

When applying for a mortgage, you will come across the phrase ‘income multiples’. This is a phrase that can be confusing if you have never come across it before.

An income multiple is how a mortgage provider works out how much they will lend to you (also known as affordability).

They will multiply your annual income by a set amount, and this amount can vary depending on the lender you apply to and how much you earn. Generally, the higher you earn, the more you will be able to borrow.

HSBC income multipleAnnual incomeDeposit amount
Can borrow 4.49 times your annual incomeAny amount of income15% of the property value or less (e.g. 10%, 5%)
Can borrow 4.49 times your annual incomeAnnual income of £45,000 a year or lessMore than 15% of the property value (e.g 20%, 25% etc)
Can borrow 4.75 times your annual incomeAnnual income of £45,000 – £100,000 a yearMore than 15% of the property value (e.g 20%, 25% etc)
Can borrow 5.5 times your annual incomeAnnual income of £100,000 or moreMore than 15% of the property value (e.g 20%, 25% etc)

How to contact HSBC mortgage customer service

Mortgages are a long term commitment and sometimes you might need to contact your mortgage provider, even if years have passed since you last spoke to them. You might need to change details on your mortgage, you could be moving home or may even be looking to remortgage.

Whatever the reason, there are usually a long list of contact details and it’s not always easy to know who you need to speak to.

Luckily, contacting HSBC about your mortgage is fairly simple with only a few HSBC mortgage phone numbers to choose from. We have put together the below list to help:

HSBC mortgage services contact number (for new mortgages and existing customers)

You can call HSBC to discuss mortgages or arrange an appointment with a mortgage advisor at:

Tel. 0800 169 6333

Opening hours: Monday to Friday 8am-8pm / Saturday and Sunday 9am-5pm

For HSBC premier mortgage services (accessible if you have a HSBC premier bank account)

Tel. 0800 085 2466

Opening hours: Monday to Friday 8am-8pm / Saturday and Sunday 9am-5pm

HSBC existing customer contact number

If you have missed mortgage payments or are concerned about future payments, you can contact HSBC’s financial support team:

Tel. 0800 085 2482

What does HSBC look at before approving your mortgage?

All lenders have slightly different rules (criteria) for lending that affect whether they will approve a mortgage application. It can be helpful to have an idea of what these rules are, so you don’t waste any time applying to lenders that aren’t suitable for your finances or the mortgage you need.

HSBC has fairly strict criteria when it comes to things like credit history, so if you have had missed payments etc in the past another lender could be a better option for you.

Below we have HSBC’s lending criteria, to help you decide if they seem a good choice for your next mortgage or remortgage application.

Lending criteriaHSBC mortgages
Acceptable depositsUK Savings account: an account with your own personal savings in is acceptable

Bridging loans: will be accepted as a form of deposit. Learn more about bridging loans here.

Equity from the sale of another property: profits from selling your current home or another property can be used as a deposit

Gifted deposit: will be accepted if it has come from immediate family (e.g. a parent). You will need to submit a gifted deposit letter assuring HSBC this is not a loan you will repay in the future.

Developer gifted deposit: if a property developer offers a discount of up to 5% of the property value, this can count towards your deposit.
Number of applicantsUp to 2 people (joint mortgage)
Minimum and maximum ages of applicantsMinimum age 18 at start of mortgage.  

If you are getting a capital and repayment mortgage, the mortgage must end by the day before your 80th birthday (the oldest person if a joint mortgage).  

With interest only, the oldest age varies depending on how you are repaying the mortgage:  

– If you have proof of the full mortgage amount in a savings account when you apply, the mortgage must end by the day before your 75th birthday.  

– If you intend to repay through money earned over the course of the mortgage, the mortgage must end by the day before your 70th birthday or retirement age (whichever is sooner).  
Can I get a foreign national mortgage HSBC?YES, but you will need to prove you have right to reside in the UK.  

If you have come to the UK as part of the EU Settlement scheme (settled or pre settled status), you will need to provide HSBC with your share code.  

HSBC applicants with right of abode, settled status, indefinite leave to remain/leave to enter can get a mortgage with the standard lending rules.  

If you have pre-settled status or do not have right of abode or indefinite leave to remain/leave to enter, you will need to:

  – Prove you have lived and worked in the UK for 12 or more months. EU/EEA/Swiss applicants will also need to show a UK tenancy agreement and applicants from other countries will need to show a valid passport stamped with the date they entered the UK.  

– Have a work visa or permit with at least 12 months left on it or 12 months left on pre-settled status  

– You will need a deposit of 25% of the property value (or more).  

– You will not be able to mortgage for debt consolidation or use a gifted deposit unless you provide a further 25% on top of this amount.  
Credit score/history requirementsHSBC are a stricter lender when it comes to credit and will usually not consider applications if you have missed any credit payments in the past.  

Your HSBC mortgage application will be declined if:  

– You have owed 3 months or more worth of payments on a mortgage or loan in the last 2 years
(unless the issues with payment were caused due to problems with your bank for example)  

– If you have had one or more County Court Judgements (CCJs) on your credit file (totalling more than £500) within the last 3 years.  

– If you have had an Individual Voluntary Agreement (IVA) or been made bankrupt within the last 3 years  
Applicants who work or live abroadIt is possible to get a HSBC international mortgage if you live abroad but the mortgage rates available can vary compared to those for UK residents. You will need to provide:  

– A credit bureau report from within the last 90 days (if you can’t provide this you will only be able to get a mortgage if you are an existing HSBC customer)  

– Proof that you have a UK bank account  

– A deposit worth at least 25% of the property value    

– An English translation alongside any original documents submitted in a foreign language (if applicable)  

You must live in a HSBC approved country and if you move to another country in the future this can affect your ability to remortgage. The approved countries are:

Australia
Guernsey
Hong Kong
Isle of Man
Jersey
Singapore
Switzerland
United Arab Emirates (UAE)
United States of America (USA)  

When we talk about mortgage ‘rates’ we are referring to the interest rates available (the amount you repay on top of the original mortgage loan).

There are 3 different HSBC mortgage rate types available which will affect the amount of interest you pay each month. These are:

  • HSBC fixed rate mortgage: the interest rate on your mortgage will stay the same (and so will your monthly repayments) for a set period of time. The fixed rate period will usually be 2 or 5 years.
  • HSBC term tracker rate mortgage: the interest rate paid on your mortgage could increase or decrease if the Bank of England base interest changes. With a term tracker mortgage this will be for a set amount of time, usually 2 or 5 years.
  • HSBC lifetime tracker rate mortgage: the interest rate paid on your mortgage could increase or decrease if the Bank of England base interest changes. With a lifetime mortgage, this will be the case for the whole mortgage term.

Not all mortgage providers will offer lifetime mortgage rates. It could be worth considering HSBC, if you want to lock in your tracker rate deal without having to worry about remortgaging at a later point.

Find out more about fixed rate mortgages in our guide ‘Everything you need to know about fixed rates mortgages’

Should I get a HSBC buy to let mortgage?

Buy to let properties can be a great source of additional funds, allowing you to buy and rent out a property for monthly rental income.

As with getting a mortgage to buy your own home, it is important to choose your mortgage provider carefully. Choosing the right lender can be the difference between saving or paying more than you need to.

It is also wise to remember that the lending rules will usually be slightly different for buy to let mortgages compared to standard residential mortgages.

If you are applying for a HSBC buy to let mortgage, there are several requirements which are:

Current mortgageYou need to have lived in and owned your current home for at least 6 months  
LocationThe property must be in the UK and cannot be a house/flat with multiple tenants or student accommodation (house of multiple occupancy or HMO)  
DepositYou need a deposit of at least 25% of the property value  
Property valueThe property must be worth at least £75,000 with an energy performance certificate (EPC) rated E or above  
Overall borrowingYou can’t be borrowing more than £2million overall with HSBC buy to let mortgages (across multiple mortgages)  
Rental incomeThe income you will get from the property will cover your whole monthly mortgage payments plus an extra 25% on top of this.  

If you pay a higher rate of tax, then you will need the rent payments to cover your monthly mortgage repayment, plus an extra 45% of the amount.  

The application itself follow as similar process to any other mortgage application, but you will also need to answer questions specific to rental property costs. You can apply online or if you prefer you can arrange an HSBC mortgage appointment over the phone with a dedicated HSBC mortgage advisor.

Are HSBC mortgage overpayments possible?

It is possible with some lenders to ‘overpay’ your mortgage. This means you pay more than the expected monthly repayments regularly or pay a lump sum overpayment.

If you are trying to cut costs, you might think paying more doesn’t make sense, but you can actually save long term by overpaying now. Overpayments can be used to:

  • Reduce how long your mortgage repayment term is
  • Reduce the amount of interest paid on your mortgage

Not every lender will allow overpayments, as they benefit more from the interest they charge than your overpayments. The ones that do allow it might charge you for overpaying or have a set amount you can overpay up to.

HSBC allows you to overpay by 10% of the total amount remaining on your mortgage each year, anything more than this and you risk having to pay early repayment charges (if on a fixed or discount rate).

The good thing with HSBC mortgages is you are not charged exit fees on top of early repayment charges, if you choose to fully repay your mortgage early.

HSBC: how to overpay mortgage

You can overpay a HSBC mortgage in 2 ways:

  • Arrange regular overpayments where you pay a small amount extra every month
  • You can make a lump sum overpayment

You can arrange to overpay online by adjusting your direct debit via the HSBC website live chat function (between 8am-6pm) or by calling and speaking to a HSBC advisor.

You can also overpay by logging into online banking and setting up a standing order. You can arrange this with your bank to make a payment to your mortgage account every month.

If you are arranging to overpay over the phone, call:

Tel. 0800 169 6333

Opening hours: Monday to Friday 8am-8pm / Saturday and Sunday 9am-5pm

If you want to transfer a lump sum, you can conveniently arrange this online or via your banking app.

How long until you receive a HSBC mortgage in principle?

Getting a mortgage in principle is a key step to getting your mortgage sorted. After choosing a broker (if you want to use one) and finding the right property, this will be your first step to getting the mortgage you want.

It can be easy to get a mortgage in principle and is often a quicker process than you would think. With HSBC, you can get a mortgage in principle online in as little as 5 minutes (called a decision in principle by HSBC) if:

  1. You live in the UK and are over the age of 18
  2. You don’t want a buy to let mortgage
  3. You are paid in British Pounds Sterling (GBP)
  4. You’re not borrowing more on a property you already own (remortgage or additional loan)
  5.  You aren’t using a government buying scheme (e.g. Help to Buy Equity Loans)

If you don’t meet all these requirements, you will be directed to a different web page or you may have to call or speak to someone in branch instead.

If you apply for your decision in principle over the phone or in a HSBC branch, you can get advice from a mortgage advisor. This can be helpful if you aren’t 100% sure which mortgage is right for you, as they can then point you in the right direction.

When getting your mortgage in principle, you will be asked:

  • If you are applying for a new mortgage, moving home or remortgaging
  • If you are applying alone or with another person (joint mortgage)
  • How much the property you want to buy is worth
  • How much you have saved for your deposit
  • The length of mortgage you want (there is a drop-down box to select the number of years)

When you have your HSBC decision in principle, you can then put in an offer on a home and/or move onto a full mortgage application with HSBC.

If you apply for a mortgage with HSBC, it can take around 2 weeks on average to receive a formal mortgage offer. This can vary though depending on individual mortgage applications. Don’t worry if it takes slightly longer than this for your offer to come through, as timings can vary.

Benefits of HSBC mortgage deals

There are a few benefits to choosing HSBC for your new mortgage or remortgage:

  • FREE property valuation as standard with ALL HSBC mortgages.
  • NO exit fees if you choose to repay your full HSBC mortgage amount early.
  • Can overpay up to 10% each year with no early repayment charges and fees.
  • £500 cashback on selected fixed rate mortgages for first time buyers and home movers with the option of 2, 3 or 5 year deals – this even applies to some 95% mortgages!

Getting a mortgage can seem a complicated and confusing process, particularly if you are a first time buyer or you haven’t been through this process in a while.

There are a few ways that you can apply for a mortgage with HSBC. You can:

HSBC mortgage reviews

When choosing a mortgage provider, it can be a good idea to research what other borrowers think about the lenders you are considering.

The first place people will usually look is the independent review site Trust Pilot. HSBC UK is currently rated 1.3 out of 5.0 stars on Trust Pilot with over 7,000 independent customer reviews. It is best to remember though that these are reviews about all of HSBC’s products and services.

This could be off putting but most of these reviews relate to HSBC’s banking services not their mortgages. It can also be helpful to note:

  • Which? has rated HSBC joint 8th out of 15 UK mortgage lenders with a customer satisfaction score of 68%. They score 3.0 out of 5.0 stars in areas such as customer service and value for money and 4.0 out of 5.0 stars for transparency of charges.
  • HSBC won the YourMortgage Awards Best Remortgage Lender 2022 and the MoneyFacts Mortgage Intermediaries Award 2022.
  • HSBC won 4 awards at the MoneyAge Mortgage Awards 2022 which were First Time Buyer Lender of the Year, Remortgage Lender of the Year, Overall Mortgage Lender of the Year and Lender Customer Service of the Year

Resources

HSBC – Mortgage payment support

Gov.uk – How to buy a home

Citizen’s Advice – Managing your mortgage

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