Should you get a mortgage from HSBC?

£18.2 billionLent to home owners in 2017.

HSBC is one of the UK’s largest mortgage lenders, accounting for 7.1% of the mortgage market share in 2017, which is around £18.2 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.

See how they compare to other mortgage lenders:

Is HSBC a good mortgage lender?

9,980Upheld complaints received by the financial regulator.

We looked at HSBC’s customer complaints record between July and December 2017. During this period the Financial Conduct Authority (the financial regulator) received 9,980 officially upheld complaints from HSBC mortgage customers.2 That’s 1.19% 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 a HSBC mortgage application take?

22 daysAverage speed of Trussle customer’s mortgage application with HSBC.

Between July 2017 and July 2018, the average speed that HSBC processed a Trussle customer’s mortgage application was 20 days.* That’s longer than the 18-day average across all the major 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.

*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 much could I afford to borrow from HSBC?

4.75 xMaximum annual income.

HSBC could lend up to a maximum of 4.75 times income before tax, depending on your circumstances.

These details were last updated on 13th July 2018.

Current mortgage rates from HSBC

Lowest 2 year fixed rate


Initial rate:
1.94%
Annual Percentage Rate of Charge (APRC):
3.60%

Based on securing a mortgage of £136,200 over a 25 year term. Reverts to SVR after initial 27 month period, costing £702.16 per month for 273 months. Total amount payable is £207,464.32 including interest and fees. This deal was last updated on 17th July 2018.

Lowest 5 year fixed rate


Initial rate:
2.14%
Annual Percentage Rate of Charge (APRC):
3.30%

Based on securing a mortgage of £136,200 over a 25 year term. Reverts to SVR after initial 63 month period, costing £688.71 per month for 237 months. Total amount payable is £200,476.33 including interest and fees. This deal was last updated on 17th July 2018.

Standard Variable Rate (SVR):


3.94%
3.94%

This rate was last updated on 17th July 2018.

Current mortgage deals from HSBC

First-time buyer


Lowest initial period true cost deal:
£20,878.02
Monthly payment:
£773.26
Upfront fee:
£0.00
Initial rate:
2.04%
Standard Variable Rate (SVR):
3.94%
Annual Percentage Rate of Charge (APRC):
3.60%

Reverts to SVR after initial 27 month period, costing £937.10 per month for 273 months. Total amount payable is £227,001.32 including interest and fees. This deal was last updated on 12th July 2018.

Remortgage


Lowest initial period true cost deal:
£15,479.64
Monthly payment:
£573.32
Upfront fee:
£0.00
Initial rate:
1.94%
Standard Variable Rate (SVR):
3.94%
Annual Percentage Rate of Charge (APRC):
3.60%

Reverts to SVR after initial 27 month period, costing £702.13 per month for 273 months. Total amount payable is £207,169.32 including interest and fees. This deal was last updated on 16th July 2018.

Frequently asked questions about HSBC mortgages

This information was last updated on 16th July 2018.

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. As long as you don’t exceed this allowance, you won’t face any early repayment charges.

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.

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.

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 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.

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.