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UK's 6th largest lender

HSBC lent just under £22bn in 2018. That's 8% of all mortgage lending.

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8-day submission time

That's 8 days faster than the average of 25 lenders we measured.

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Borrow 4.75x your income

You could borrow up to this amount if you meet the lender's requirements.

About HSBC

HSBC is one of the UK’s largest mortgage lenders, accounting for 8% of the mortgage market share in 2018, which is around £21.5 billion. (1)

The Hongkong and Shanghai Banking Corporation (HSBC) fully acquired Midland Bank in 1992 cementing its presence in the UK.

HSBC mortgage deals are available to a wide range of people, but they generally won’t lend to you if you have particularly bad credit.

We’ve reviewed some of the UK’s top mortgage lenders and measured their service, application speed, and affordability.

In this review we'll cover:

Is HSBC a good mortgage lender?

There are many ways to measure how good a lender is. We've chosen to focus on publicly available complaints data to estimate their quality of service.

We looked at HSBC’s customer complaints record between July and December 2018. During this period the Financial Conduct Authority (the financial regulator) received 8,613 officially upheld complaints from HSBC mortgage customers.(2) That’s around 2% of customers and is higher than the 0.4% average across major lenders.*

*The number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How long does an HSBC mortgage application take?

During the last six months, the average speed that HSBC processed a Trussle customer’s successful mortgage application was 8 days. That’s quicker than the 16-day average across all the lenders we’ve submitted applications to.

Bear in mind that the speed of application will vary depending on your own personal circumstances and the lender’s present day-to-day performance. In some cases, applications can be approved by the lender within 24 hours, while some can take weeks or even months. This can also be impacted by the quality of application submitted, which is why you may want to consider using a mortgage broker. The average quoted speed therefore may not reflect your own experience.

These details were last updated on 8th August 2019.

How much could I afford to borrow from HSBC?

How much you can get for a mortgage will vary. But HSBC could lend up to a maximum of 4.75 times income before tax, depending on your circumstances.

These details were last updated on 8th August 2019.

HSBC's lowest mortgage rates

HSBC mortgage rates will vary depending on the type of mortgage you’re recommended.

The following HSBC mortgage rates are based on securing a mortgage of £181,600 on a £227,000 property (that's 80% loan-to-value) over a 25 year term.

Compare deals from all lenders >

Lowest 2 year fixed rate

1.64%

Initial rate

3.90%

Annual Percentage Rate of Charge (APRC)

Details

Based on securing a mortgage of £181,600 over a 25 year term. Reverts to SVR after initial 24 month period, costing £958.70 per month for 276 months. Total amount payable is £283,644.16 including interest and fees. True cost based on a 24 month period. This deal was last updated on 1st March 2019.

Lowest 5 year fixed rate

2.09%

Initial rate

3.50%

Annual Percentage Rate of Charge (APRC)

Details

Based on securing a mortgage of £181,600 over a 25 year term. Reverts to SVR after initial 60 month period, costing £939.11 per month for 240 months. Total amount payable is £273,372.40 including interest and fees. True cost based on a 60 month period. This deal was last updated on 1st March 2019.

Standard Variable Rate

4.19%

Standard Variable Rate (SVR)

Details

This rate was last updated on 1st March 2019.

HSBC's best mortgage deals

The following HSBC mortgage deals are based on securing a mortgage of £181,600 on a £227,000 property (that's 80% loan-to-value) over a 25 year term.

We’ve searched for the most competitive deals according to true-cost. This includes capital and interest repayments, fees, and incentives due over the initial period of the deal, and is a more effective way of comparing deals than looking for the lowest interest rate deal.

Compare deals from all lenders >

First-time buyer

£18,874.60

True cost over initial period

£774.15

Monthly payment

Details

Includes £295 upfront fee. 2.05% initial rate reverts to 4.19% SVR after initial 24 month period, costing £962.06 per month for 276 months. Total amount payable is £284,403.16  including interest and fees. That’s a 3.90% APRC. True cost based on a 24 month period. This deal was last updated on 1st March 2019.

Remortgage

£18,579.60

True cost over initial period

£774.15

Monthly payment

Details

Includes £0 upfront fee. 2.05% initial rate reverts to 4.19% SVR after initial 24 month period, costing £962.06 per month for 276 months. Total amount payable is £284,108.16 including interest and fees. That’s a 3.90% APRC. True cost based on a 24 month period. This deal was last updated on 1st March 2019.

Frequently asked questions (FAQs)

Updated on 29th May 2019.

What is an HSBC Mortgage in Principle?

A Mortgage in Principle - also known as a Decision or an Agreement in Principle - will give you a good indication of how much a lender’s potentially prepared to lend to you. It will also let estate agents know that you’re serious about buying a property.

Trussle can provide a free Mortgage in Principle quickly.

How long are HSBC mortgage offers valid for?

HSBC Mortgage offers are valid for 180 days from the date the offer document is issued. Where a case is still under assessment after the offer has elapsed, an offer extension may be considered on a case-by-case basis, but only in extremely exceptional circumstances.

When would my HSBC mortgage offer expire?

HSBC have a standard term of six months on all their mortgage offers, regardless of whether you’re a new or existing customer. This gives you six months to finalise the purchase of your property. If there are any delays, you’ll have to reapply or request an extension.

Will HSBC release funds on the completion day?

Yes, HSBC will release your mortgage funds to the conveyancer on your completion date. The completion date is also when you pick up the keys so you can move into your property.

You’ll only agree to a completion date once you’ve paid your deposit for the property and all the legal paperwork has been signed. After that’s taken care of, your solicitor and the seller’s solicitor will choose a date that suits all parties, and they will let HSBC know.

How do I know when to make my first payment?

HSBC will write to you telling you when you need to make your first monthly payment. This letter will also include how much you’ll need to pay.

HSBC don’t have a fixed date for writing to you, but you should expect the letter to arrive shortly after you’ve completed on your property purchase.

Can I make overpayments on my HSBC mortgage?

Yes, but it depends on the type of mortgage you have with HSBC. If you have a fixed rate mortgage, you’ll have an annual overpayment allowance. This enables you to make additional payments without incurring a fee.

Currently, the allowance is the equivalent of 10% of the outstanding balance of your mortgage calculated on each anniversary of the start of your fixed rate period.

Could I end up paying an Early Repayment Charge on my overpayment to HSBC?

Possibly, depending which mortgage you choose. Fixed or discounted-rate mortgages, for example, will incur an Early Repayment Charge if you go over your annual overpayment allowance.

Your annual overpayment allowance is calculated on the anniversary of your current rate, and will be based on your current remaining balance. Again, as long as you don’t exceed this allowance, you won’t face any early repayment charges.

Do HSBC allow mortgage breaks?

If you’re not able to make an HSBC mortgage repayment for whatever reason, you can discuss your options with your mortgage broker or directly with HSBC - they’ll go through the payment options available to you.

Are HSBC mortgages portable?

If you’re an HSBC mortgage customer, it’s possible for you to transfer your current mortgage deal from one home to another when you move. This process is known as ‘porting’.

Porting is subject to HSBC’s standard lending criteria and the T&Cs in the borrower’s mortgage agreement.

Will HSBC allow me to view my mortgage online?

Yes. Once you’ve registered for HSBC’s online banking portal, you’ll be able to log in and see up-to-date information about your mortgage. So you’ll know when your next payment is coming up, how much it’ll be, and when your current deal is going to end.

What is the HSBC variable rate?

HSBC’s Standard Variable Rate (SVR) is the higher-rate mortgage deal you’ll move onto after your fixed or discounted term is over — unless you’ve successfully applied for another mortgage. It isn’t a fixed rate, which means that HSBC can raise or lower your payments to reflect changes in the underlying market.

SVRs tend to be more expensive than fixed rate deals. It’s always worth considering speaking with a broker like Trussle to discuss your options to see whether a more suitable deal is available for you, either with the same lender or elsewhere.

Do HSBC require that I get insurance?

Yes. Like most major lenders, HSBC will require that you get buildings insurance to cover the property they’re investing in. HSBC also requires you to get contents insurance, which covers personal possessions within your home.

While you’ll often find buildings and contents insurance bundled together, you can also purchase them separately if you find a better deal.

Does HSBC offer Help To Buy mortgages?

Yes, but you'll need to go directly to HSBC to get one. HSBC don’t currently accept Help To Buy applications via mortgage brokers.

Does HSBC offer Commercial mortgages?

You might be able to get a Commercial mortgage for your company through HSBC as long as you meet their lending criteria. You could borrow £25,001 or more and choose from a wide selection of repayment options and rates.

Does HSBC do Offset mortgages?

This information is currently unavailable for this lender.

Will I be sold PPI by HSBC?

No. While HSBC did sell Payment Protection Insurance (PPI) to its mortgage customers in the past, they stopped the practice entirely in 2008.

PPI is designed to cover your monthly mortgage payments if you lose your job, are involved in an accident, or become too sick to work. If you believe you’ve been mis-sold PPI by HSBC in the past, you can follow their complaints procedure.

How do I contact HSBC?

To arrange an HSBC mortgage appointment or speak to an adviser, you can call them on 0800 169 6333. Lines are open Monday to Friday 8am - 9pm, Saturday 8am - 8pm, and Sunday 9am - 6pm. Opening hours within individual mortgage departments may vary.

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Your home could be repossessed if you don't keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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Sources

Deal and rate data was sourced by Trussle. All other information was sourced from HSBC’s own website, unless referenced below.

  1. UK Finance

  2. Financial Conduct Authority