HSBC

When you submit an application, we'll ask for one of the following documents (a separate document will be required to verify proof of identification): Please note we require postal documents delivered to the customers address - online documents are not acceptable

When you submit an application online, we automatically run an electronic identity check. If the customer's identity cannot be verified electronically, we'll accept a valid full UK photo card driving licence, this can be used to both identify themselves and verify their address.

If a customer does not have a valid full UK photo card driving licence, we'll ask for one of the following documents. A separate document will be required to verify proof of address.

If the applicant doesn't have any of the above documents, we may accept one of the following:

Overseas Policy

Please note, we can accept document translations from a UK based translation company, provided we can verify them via their website. When submitting foreign language documents, please provide English translations as well as the original documents.

If the customer meets the following criteria, applications can be submitted outside of the policy below.

Exceptions apply to British Armed Forces. Please refer to the Armed Forces policy for further information.

If the customer moves to a different country after taking a mortgage with HSBC, this may affect their ability to borrow additional money in the future.

UK and foreign nationals who are not UK residents can apply for a mortgage subject to meeting the following criteria:

HSBC UK is authorised and regulated by UK regulators, and governed by UK law. Following the guidance below ensures that we remain compliant with relevant cross-border regulations and local laws applicable in other countries.

The following guidance applies to both where a customer is living, and where they are physically present. Please apply the guidance to any application where the customer is located / resident in a country other than the UK at point of application.

Only approved countries are listed below – any countries and territories not listed are ‘not approved’. If the customer does not meet the criteria in the guidance below, or the country/territory is not on the list, you cannot proceed with the application.

A US Person is defined as any person with US Nationality, Citizenship, Residency, Tax Resident or Green Card Holder.

Along with all guidance in the International policy, you must ensure the following is complete for any US Person:

Foreign Nationals resident in the UK

All European Economic Area (EEA) Nationals and Swiss Nationals are treated as UK nationals.

We also accept applications from Non-EEA Foreign Nationals who have been granted the right of abode or indefinite leave to remain or enter in the UK by the Home Office.

We will only lend to applicants without the right of abode or indefinite leave to remain in the UK if they meet all the following criteria:

Non-UK Residents

For overseas customers looking to purchase a property in the UK please see the overseas customers section.

We do not currently provide guarantor mortgages.

We do not currently provide Shariah compliant home purchase plans.

We do not currently accept any Help to Buy applications via HSBC for Intermediaries.

The maximum number of applicants for a mortgage via HSBC for Intermediaries is 2.

Please note, the borrowing must be in the same name(s) as the ownership for all applications made via HSBC for Intermediaries.

Applicants may apply to remortgage at any time after they have completed their purchase. Please note that for properties owned for less than 6 months, we will require the applicant's solicitor to satisfy our responsible lending commitments and confirm the property was not purchased via a sub-sale style transaction.

For existing HSBC customers looking to borrow more, a minimum of six months will be required from the date of drawdown of the latest mortgage or Home Loan on the property being used as security.

Right to Buy

We do not currently accept applications for Right to Buy properties via HSBC for Intermediaries.

Shared Ownership

We do not currently accept applications for properties under Shared Ownership schemes via HSBC for Intermediaries. We do accept Shared Ownership applications directly in our branches and over the phone.

We do not currently accept applications for properties owned in trust.

HSBC provides a flexible service to Armed Forces personnel and we are committed to honouring the Armed Forces Covenant.

For details on how we process requests from Armed Forces customers to let their property while overseas on active service, see our consent to let section.

All applicants are credit scored via Experian as part of the full mortgage application.

The bank will not consider applications from applicants that are defined by the FCA as Credit Impaired as follows:

• Within the last two years has owed overdue payments, in an amount equivalent to three months’ payments, on a mortgage or other loan (whether secured or unsecured), except where the amount overdue reached that level because of late payment caused by errors by a bank or other third party;
• Has been the subject of one or more county court judgments, with a total value greater than GBP500, within the last three years; or
• Has been subject to an individual voluntary arrangement or bankruptcy order which was in force at any time within the last three years.

Light adverse credit

Applicants who have previously missed payments on their credit commitments will usually be declined. Individual cases may be considered under exceptional circumstances.

Income needs to be current, regular and consistent. Income can only be used where it is considered likely that a similar level of income will be received for the full term of the mortgage.

For applications where the LTV is less than 85%:

For applications where the LTV is 85% or above:

Note: Income is gross total income (or joint gross total income)

For income in a Foreign currency other than GBP, the amount should be converted using an appropriate currency conversion tool and input the gross income in GBP in the application.

Non-UK residents must have a minimum income of £75,000 (excluding bonus, commission and overtime). For joint applications – at least one applicant must have an individual income of £75,000 (excluding bonus, commission and overtime).

For interest only loans, customers must have an annual minimum income of £100,000. For more information, see the Interest only section of our lending criteria.

Online bank statements and online payslips cannot be accepted together; hard copies of one or the other are required, or a letter from the applicant's employer.

Following the Government’s recent announcement of a 2nd national lockdown, the below changes for assessing self-employed income have been introduced with immediate effect:

New applications

Please check with your customer(s) if their business has been impacted by the recent tightening of COVID restrictions, as this this will not be reflected in their last 60 days’ worth of business bank statements.

Unfortunately, if your customer(s) is impacted, we will not be able to process an application at this time. As soon as restrictions are eased and they can evidence that their income is no longer impacted, you will be able to submit their application as normal.

Pre-offer applications

If your customer(s) has been impacted by the recent COVID restrictions since submitting their application, please contact your local BDM or call the Broker Support Helpdesk to advise us of any changes. If we are not made aware, it could result in them proceeding with borrowing they may not be able to afford.

Your customer’s application will proceed as normal if their financial situation hasn’t been impacted, however we may ask for further documents to ensure income is sustainable. All self-employed applications will continue to be reviewed by an underwriter.

The affordability assessment reviews the customer's net income, the customer's committed expenditure, basic essential expenditure and the basic living costs of their household. Affordability is assessed on a capital repayment basis and takes into account likely future interest rate rises.

Evidencing customer expenditure

All customer stated credit and non-credit committed expenditure must be critically assessed.

Credit commitments are verified, bank statements may be required in some cases.

For international customers the last three months' worth of bank statements and the latest months credit card statement, where a credit card balance exists, must be provided.

Debts ending within 6 months

If an applicant can provide evidence that a commitment or ongoing cost is intended to cease within 6 months of their mortgage application, we will discount this debt from the debt/income calculation.

If further clarification is needed in respect of a customer's credit commitments, we reserve the right to examine Credit Bureau information to confirm the nature and true extent of their lending exposure.

Our assessment is based on the full costs associated with the Buy to Let – not just the rental income.

All rental income must be evidenced by the latest year's tax return.

Tenancy agreements and bank statements showing rental income, mortgage payments and outgoings related to the Buy to Let property are only acceptable as evidence in the following cases:

For customers with existing Buy to Let properties who are applying to purchase/remortgage a residential property for their own use, we will also need to ensure the request 'makes sense' and that the property being purchased or remortgaged is in line with the customer's profile.

We consider childcare and school fees as a regular outgoing and commitment, which will be assessed on a case-by-case basis.

Let to buy residential mortgages are not currently available

This will be treated as running 2 properties. Our affordability calculations will consider both mortgage balances and running costs, plus the second property and income from employment (salary multiples) criteria will apply.

Please note, only simultaneous porting is available via HSBC UK for Intermediaries, where the sale and purchase complete at the same time.

Transitional Arrangements (TA) were introduced by the FCA in order to protect customers from becoming a ‘mortgage prisoner’ or ‘trapped borrower’ i.e. unable to move home or change their interest following the introduction of more stringent affordability requirements.

TA apply where there is a variation to a residential mortgage contract where no additional borrowing is being requested except for product fees that may have been added to the loan.

TA’s only apply to existing residential HSBC UK mortgage customers. The TA policy cannot be applied to an external remortgage application, where your customer is seeking to transfer an existing mortgage from another lender without increasing their mortgage borrowing.

Under no circumstance should an application which meets TA criteria be declined or turned away without being formally assessed by an underwriter. This includes where the Decision in Principle offers less than the customers current mortgage. You will need to submit the application and all supporting documentation before the application can be considered.

Any customers who wish to complete a simultaneous porting application, who meet the TA criteria but are currently in arrears, will need to contact HSBC UK directly to complete these applications.

HSBC only provides mortgages and Homeowner loans where:

’We will not provide residential lending in the following circumstances:

The list of other unacceptable property types are:

HSBC can provide mortgages in mainland England, Wales, Scotland, Northern Ireland and the Scottish Isles.

The maximum LTV borrowing on a flat is 85%. For new build flats this reduces to 80%. The maximum LTV only applies where the total loan amount is not exceeded as set out in the Loan section.

In order to be considered suitable for mortgage purposes, flats must be habitable with a fully functioning internal kitchen and bathroom and with no restrictions on occupancy.

Buildings insurance covering the full cost of re-building the flat must be taken out by the borrower and must remain in place during the term of the mortgage.

We will not normally lend where:

Please note, while blocks of flats with more than 4 floors including the ground floor with no lift are normally considered unacceptable for mortgage purposes, some exceptions can be made. Good quality, modern ex local authority medium and high-rise purpose built or converted flats in prestigious areas of central London and certain other cosmopolitan centres will be considered on individual merit by the valuer, subject to good mortgageability and sustainable resale potential.

In all cases, we will require the valuer to confirm that the flat is both mortgageable and marketable.

Studio flats

There are no restrictions on studio flats. We can lend, subject to valuer's comments that the property is suitable security.

The following types of tenure are acceptable:

Other than house boats and mobile homes, there is no particular type of property that we cannot lend against subject to the property meeting our non-standard construction type criteria.

In order to be considered suitable for mortgage purposes, properties must be habitable with a fully functioning internal kitchen and bathroom and with no restrictions on occupancy.

Buildings insurance covering the full cost of re-building the property must be taken out and must remain in place during the term of the mortgage.

We cannot provide lending for properties with covenants that restrict the period of occupation and/or the age or type of employment of the occupant.

We can lend where the commercial element represents a minor part of the property (for example a single room used by the borrower for home-working), providing the whole property can be sold as a complete residential unit.

We cannot provide residential mortgage facilities on a property that is used wholly for business purposes or where there are commercial buildings on the same title (for example, a holiday let/cottage).

We can lend against residential properties with commercial properties close by, subject to the valuer's comments that the property is suitable security.

In order to be considered suitable security, properties with an annexe/annexes must meet the following requirements:

The following criteria will NOT be acceptable:

The bank will be guided by the type of valuation received and any additional guidance from the valuer (in cases where a PV has been completed).

Exceptionally, we can lend against properties with 2 kitchens, subject to the valuer's comments that the property is suitable security.

We will not provide residential mortgages for:

Timber-framed

Timber-framed properties constructed between 1920 and 1965 are considered unacceptable for mortgage purposes due to inferior building regulations in relation to vapour barriers.

Scottwood/Swedish are also considered unacceptable for mortgage purposes.

All timber

Due to the unusual nature of the construction, properties made entirely from timber are usually considered restricted. We will be guided by the valuer's comments on marketability. If acceptable, they will be subject to a maximum LTV of 80%

Wimpey No Fines and Laing Easiform

Properties dated from 1945 onwards are acceptable, subject to the valuer's comments, at the lower LTV ratio of 80%.

Bear in mind that Wimpey No-Fines properties are currently being monitored in the north of England where some deterioration has been noted. If this construction type is subsequently defined as 'defective', this could have a significant impact on the value and saleability of the property.

Steel frame

Water penetration and condensation can cause corrosion of the steel frame causing instability of the property. These properties are acceptable subject to a satisfactory structural engineer's report, at the lower LTV ratio of 80%.

Livett Cartwright steel frames, Hawthorn Leslie steel frames with boarded finish, and BISF (British Iron and Steel Federation) are considered unacceptable for mortgage purposes.

Ex-local authority

We accept ex-local authority properties on a case-by-case basis.

If the property is a flat, we can only lend if a minimum of 75% of the block is now privately owned. Medium and high-rise ex-local authority flats are considered restricted properties with a maximum LTV of 80%.

Blocks of flats with more than 4 floors including the ground floor with no lift are normally considered unacceptable for mortgage purposes. However, good quality, modern ex local authority medium and high-rise purpose built or converted flats in prestigious areas of central London and certain other cosmopolitan centres will be considered on individual merit by the valuer, subject to good mortgageability and sustainable resale potential.

Kit-built

The following 'kit-built' type of constructions with special architectural merit or proven long-term durability are considered restricted with a maximum LTV of 80%, subject to usual warranty provision if less than 10 years old:

Durisol

Durisol houses are accepted up to 80% LTV, subject to a satisfactory structural engineer's report. Durisol flats are considered unacceptable for mortgage purposes.

Mundic block

Properties containing mundic block materials (primarily situated in Cornwall & Devon) must be tested using the screening test developed by the Royal Institution of Chartered Surveyors. The results of the test will be considered as follows:

A= Suitable for mortgage purposes
A/B = Restricted, acceptable at up to 80% LTV, subject to valuer's comments
B = Unacceptable for mortgage purposes
C = Unacceptable for mortgage purposes

Bellrock

Load bearing gypsum plaster panel construction is considered unacceptable for mortgage purposes.

We can provide mortgages for second homes if both loans can be serviced entirely from the applicant's salary, subject to our normal credit assessment. This is limited to one property in addition to the applicant's main residence and subject to the below:

We can only lend up to the maximum allowable LTV of the lower of the 'discounted' purchase price or valuation. This will ensure that customers are contributing a deposit to the purchase, rather than relying on any equity in the property to fund this.

Family-discounted purchase

Where the property is a discounted purchase from a family member, we will only lend up to the maximum allowable LTV of the lower of the 'discounted' purchase price or valuation. We will also require the solicitor or licensed conveyancer to satisfy themselves that the family member gifting the property is not insolvent and to arrange suitable indemnity insurance for the full value of the property if they deem it necessary.

Please note, when an applicant is purchasing a property from a family member separate legal representation is required. It is HSBC policy that the same solicitor or licensed conveyancer cannot act for both seller and buyer.

Japanese Knotweed is an invasive plant that grows rapidly and can cause structural damage to buildings and roads. The valuer will follow the RICS guidelines to assess the risk where the weed has been identified on or near the property (e.g. within 7 metres of the garden fence).

We will rely on the Valuer to confirm whether a Japanese Knotweed Survey is required and may require the following:

Where Japanese Knotweed has been identified within 7 metres of a habitable space at the property (either within the boundary of the property being mortgaged to HSBC or on neighbouring land) and/or the Japanese Knotweed has caused serious damage to outbuildings, paths and boundary walls in addition to the above, the Treatment Plan will need to have been fully completed and we will require a copy of the Completion Certificate and 10 year Insurance backed guarantee which should be in force.

All documents relating to Japanese Knotweed will be provided to the Valuer for their confirmation that the property is suitable for mortgage security and whether there is any impact on the valuation of the property.

We define a new build property as one that will be occupied for the first time and/or has been built and completed within the last 24 months.

Although we can approve mortgages on properties not yet built subject to satisfactory valuation, we will not release funds until the property has been completed. A re-inspection may be required if the surveyor advises one is necessary in their original valuation.

Standard lending criteria apply subject to:

New Build Incentives

Financial Incentives

Financial incentives up to 5% of the property price are acceptable without impacting property value.

Where the value of a financial incentive is above 5%, the difference must still be deducted from the purchase price for LTV purposes.

Non-Financial Incentives

Any non-financial incentives offered by a builder / developer are acceptable without impacting LTV. 

Any incentives either financial or non-financial must still be declared.

Structural defects warranties

If the applicant is purchasing a property built within the last 10 years, or remortgaging a property built in the last 2 years, we require a suitable structural defects warranty to be in place. We will accept warranties from the following providers:

We do not lend to fund construction of a new property or the conversion to or renovation of a residential property.

We will consider applications for properties with leased solar panels, providing the indexed LTV is less than 95%. In line with the guidance given by the Council of Mortgage Lenders (CML), we will ask the solicitor to obtain the following:

To determine whether a property is suitable security for a mortgage loan, we will use either an automated valuation, managed desktop valuation or physical valuation.

Conveyancing options for purchases

Customer chooses their own Solicitor or Licensed Conveyancer firm

Once the customer has provided you with their chosen firm you need to check if the chosen firm meets HSBC criteria and if they do, then the firm can act for both customer and HSBC.

The basic criteria is -

In addition to these basic criteria the firm must have applied via LMS to be able to act for HSBC and are then subject to series of due diligence checks.

Separate legal representation

Solicitors for remortgages

Customers have 2 options -

1 - Fees Assisted –

We will appoint a legal representative on the customer's behalf and HSBC will pay the basic legal fees. We outsource the processing of the legal requirements for the following cases to a third party solicitor/conveyancer. This will be to either Optima Legal or a solicitor/conveyancer on the Legal Marketing Services (LMS) managed panel:

LMS and Optima Legal only represent the bank when undertaking the legal processing of a remortgage, undertaking all required searches, liaising with the customer for completion of the security documentation, redeeming the existing lender and registering the charge.

Where there is additional legal work attached in the fees assisted option, to their mortgage application, the customer will need their own legal representation. The customer can choose to either:

Below is a list of the most common types of additional legal work:

2 – Customer appoints their own Solicitor or licenced conveyancer –

Customer will waive their right to HSBC contributing towards the cost of their legal fees. The customer will need to agree cost and terms direct with their chosen firm.

Once the customer has provided you with their chosen firm you need to check if the chosen firm meets HSBC criteria and if they do, then the firm can act for both customer and HSBC.

The basic criteria is –

In addition to these basic criteria the firm must have applied via LMS to be able to act for HSBC and are then subject to series of due diligence checks.

Separate legal representation

Contact details for fees assisted remortgage applications -

LMS:

Optima Legal:

Minimum term

The minimum term is 5 years (60 months)

Maximum term

Subject to Income after retirement criteria, the following maximum term criteria applies:

The minimum amount we can lend is £10,000. The minimum property value we accept is £50,000.
There is no maximum loan amount restriction for residential mortgages, as long as the application meets all other criteria.

Please note that the below matrix does not apply to Flats, New Build properties or Additional borrowing. Please visit the relevant sections for further details.

Please note: for split terms where there are both repayment types, the interest-only maximum LTV will apply to the combined borrowing amount. Customers meeting the eligibility criteria can now take homeowner loans/further advances lending on interest only terms up to a maximum LTV of 60%, future capital repayment borrowing will be limited to 75% for cases less than or equal to £2m, and 65% for cases over £2m.

HSBC can only lend the amount required by the existing lender for redemption.  This means if the lending requested is greater than the redemption figure, the customer will not receive the surplus funds.

The maximum LTV for additional borrowing is 85%. The maximum LTV only applies where the total loan amount is not exceeded as set out in the Loan section.

Further advances as standalone applications must be no less than £10,000. For information on further advances for debt consolidation please see the debt consolidation section.

Please note, for homeowner loans/further advances linked to a remortgage from another lender the minimum loan amount must be no less that £10,000 with the remortgage element of the lending being no less than £1000 of the total loan.

Before applying for a standalone Additional Borrowing application you will need to confirm the following:

We can lend up to the maximum allowable LTV of the discounted purchase price or valuation. This ensures that customers are contributing to the purchase, rather than relying on any equity in the property to fund the deposit.

You need to confirm and document the source of an applicant's deposit as we will be unable to complete the mortgage without this information. Please do not forward any form of documentary evidence regarding deposits unless specifically requested.

Personal Savings
Funded from the customer's own resources.

Secured borrowing
Funds raised by releasing equity from another property owned by the applicant.

Family Gifted Deposit (including where protected by a Declaration of Trust)
Where the deposit has been 'gifted' by a family member, the acting solicitor/conveyancer must obtain a signed letter from the donor to confirm the deposit is a 'non-refundable and an unconditional gift and that no interest is claimed in the property'.

Please note – a family member is considered to be close relation defined as a spouse, domestic partner, grandparent, parent, sibling, half sibling, aunt, uncle, cousin, in law relation or step relation.

If a family member is contributing towards the purchase price and wishes to protect their beneficial interest by way of a Declaration of Trust, we will need to approve this and ensure our interest in the property is protected. We will also require a Letter of Consent to be signed by the contributor.
Please note: We are unable to proceed if a Declaration of Trust is to be created against a property that will be registered to a sole proprietor (property owner)

Developer Gifted Deposit/Incentive
Any incentives provided by a Developer should be discounted from the purchase price in line with credit policy. We can only lend up to the maximum allowable LTV of the discounted purchase price or valuation.

New Build Properties
Where the LTV is greater than 75 per cent, a minimum GBP25,000 deposit is required.

Foreign Nationals/Non-UK Residents
Deposit is funded from the customer's own resources, ie personal savings. Gifts are not acceptable, unless they are in addition to the 25 per cent deposit provided from the applicants own resources.

Please note that this is not exhaustive and a source of deposit not listed above can be considered subject to there being no element of personal borrowing (e.g. Personal Loan, other loan from a family member/third party, director's loan, Credit Card, Overdraft) or a gift from a third party not listed as acceptable.

Not acceptable
Unsecured credit facilities or personal borrowing (money that is borrowed by the customer other than by way of a legal mortgage over property owned by them and will need to be repaid at any point in the future) must not represent any element of the deposit.

Single applicants requesting a residential interest-only mortgage will be required to have an annual minimum income £100,000 which must meet our income eligibility criteria below. For joint applications at least one applicant must have an annual minimum income of £100,000.

Eligible income sources:

Employed income: basic + fixed allowances (excluding bonus, commission, overtime and rental income)

Self employed income: net profits + director's salary

Pension

Benefit income

With an interest only loan, the maximum term is 25 years (subject to maximum age policy) and the minimum term is 5 years. The maximum LTV is 75% for both remortgage or purchase applications dependent on the size of the loan. Customers meeting the eligibility criteria can now take homeowner loans/further advances lending on interest only terms up to a maximum LTV of 60 per cent, this will also mean that any future borrowing (irrespective of repayment type) will be limited to 60 per cent LTV).

Acceptable repayment vehicles

For more details, please see Residential Interest Only Repayment Strategies.

We are unable to accept the following as a suitable repayment strategy:

We can split a mortgage into two separate terms for example, 10 years capital repayment and 10 years interest only. Under this scenario, a fee may be payable on each portion of the loan and the interest-only maximum LTV will apply to the combined borrowing amount.

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.

HSBC does not currently provide offset mortgages

The interest chargeable on the mortgage balance will be calculated every day rather than at the end of each week, month or year.

A further advance for debt consolidation purposes is possible subject to customers meeting the following requirements:

• maximum of £50,000 and
• a maximum LTV of 80%, or 60% if there is any element of interest only borrowing.

Please note that all debt commitments will still be included in the affordability assessment, unless it can be proven that the commitment finishes in the next 6 months.

The following provides examples of common scenarios and gives guidance on whether they would be categorised by HSBC as debt consolidation (please note that this is not an exhaustive list):

Independent Legal Advice (ILA) is the process where a person is advised by their own solicitor or licensed conveyancer, in a face to face meeting in the absence of the borrower and other interested parties, as to the consequences for them of executing a mortgage deed and agreeing to secure new borrowing on a property they own or will own.

HSBC's policy is that the owner(s) of a property must be advised of the legal consequences of providing a mortgage over it to secure residential lending. This will help ensure that the bank's security is enforceable against the borrower(s) and the owner(s) of the property, that customers are treated fairly and that the bank is lending responsibly.

As a result, HSBC requires ILA in the following scenarios:

• The security being provided is indirect (i.e. where one or more of the owners is not also a borrower). In this instance ILA is required for any owner who is not also a borrower*
• The security being provided is direct (i.e. where all owners are borrowers) and there is a difference of more than £50,000 between one or more individual owners the owner benefitting least will require ILA
• The funds are being gifted to a third party) and the difference in benefit to the third party compared to owners is more than £50,000. In this instance ILA is required for all owners/borrowers.
  
  Exception – ILA is not required where the difference in benefit is less than £50,000, regardless of funds being used for individual owners or gifted to a third party. It is also not required where funds are for school fees for a dependent child under the age of 18.
• The funds are being injected into a business that is not 100% owned by the property owner/s and the difference in benefit to the business compared to the property owners is more than £50,000.
• Where the business is 100% owned by the property owner/s, ILA is recommended.

ILA Costs

The customer is responsible for all ILA-related fees, and should consult their chosen ILA firm for the exact cost. Where ILA is mandatory and the application is going through the LMS panel, there is an additional fee payable to the LMS panel firm for the additional work associated with this.

Guidance on who provides the ILA

If an LMS panel is acting for HSBC as part of the transaction, the customer must instruct a different firm to provide the ILA. LMS act for HSBC in the following applications and so a conflict of interest would result if the firm were also to provide the ILA:

• Remortgage
• Unencumbered HOL
• Shared Ownership *
• Transfer of Title *

*We currently do not provide this specific type of mortgage through HSBC intermediary channel.

The person receiving ILA can use a solicitor or licenced conveyancer who they know to provide this service or they can find one by visiting:

England and Wales:

• http://solicitors.lawsociety.org.uk/?Pro=True
• http://www.clc-uk.org.clc-consumers.aspx

Scotland:

• http://www.lawscot.org.uk/

Northern Ireland::

• http://www.lawsoc-ni.org

Foreign Currency Loans

We accept Foreign Currency loans through HSBC for Intermediaries. Intermediaries must make customers aware of the risks of potential exchange rate fluctuations and an illustration of the potential impact of 20% exchange rate fluctuation will be provided in the KFI+.

HSBC will notify the customer of the potential impact of an exchange rate fluctuation if there is an adverse fluctuation of more than 20%.

If the customer lives in a foreign country or is paid in foreign currency this needs to be captured. For any foreign currency values other than GBP, the amount should be converted using an appropriate currency conversion tool and input as GBP in the application. Foreign currency income is subject to a haircut within automated affordability calculations - the percentage haircuts are listed in the foreign currency matrix. For a list of acceptable foreign currencies please view our foreign currency matrix here: This PDF opens in a new window. For more information on non UK residents and foreign nationals living in the UK please see the foreign nationals section, and for overseas customers looking to purchase a property in the UK please see the overseas customers section.

The HSBC Standard Variable Rate is currently 3.54%.

If a customer wishes to temporarily let their property, please ask them to contact us as they must obtain consent in accordance with the requirements of our legal charge.

This criteria only applies to a customer’s main residential home of which they are planning to return to.

Porting of HSBC mortgages is available for existing HSBC customers on a fixed, term tracker, lifetime tracker or standard variable rate via HSBC UK for Intermediaries when the sale and purchase will be completed simultaneously. Exclusions apply to porting closed secured HSBC loans and equity buy-out applications, please ask your customer to contact us directly to complete these applications.

We offer existing HSBC mortgage customers standalone loans for a variety of additional borrowing reasons such as home improvements to the mortgaged property and for debt consolidation. Home improvements are defined as improvements to a habitable property, such as a new kitchen or bathroom, central heating, essential repairs or maintenance to the property. Renovation of properties cannot be financed by way of a residential mortgage except in extenuating circumstances where this would be in the interests of the customer and the Bank, such as flood or fire damage. Please contact your BDM or our helpdesk for further information. Further advances as standalone applications must be no less than £10,000.

Please note, for homeowner loans/further advances linked to a remortgage from another lender the minimum loan amount must be no less that £10,000 with the remortgage element of the lending being no less than £1000 of the total loan.

Before applying for a standalone Additional Borrowing application you will need to confirm the following:

Lump sum and overpayments can be made at any time to our lifetime tracker mortgages.

Our fixed rate and discount mortgages have an annual overpayment allowance equivalent to 10% of the outstanding balance at drawdown or at the start of a new rate switch, giving customers the flexibility to increase their monthly repayments or make lump sum payments up to this amount if they wish.

The overpayment allowance is refreshed annually on the anniversary of the drawdown or the start of the new rate following a switch and will be based on the current balance at the time. If the customer switches rates before this anniversary date, a new overpayment allowance will commence from the date the new rate begins. An Early Repayment Charge will apply to any overpayments made above this annual allowance (either regular or ad hoc).

Where overpayments are made on an ad hoc basis, we continue to collect the same monthly payment as before, unless the customer instructs us to reduce their monthly payment.

If a customer calls us to set up a flexible regular overpayment, we send them a confirmation letter containing a projection of the savings (both interest and term) they could make if they continue to maintain the overpayment.

If the customer subsequently makes any changes to their direct debit, payment date or payment amount or if the interest rate changes, we automatically recalculate and reschedule the monthly payment based on the current balance, interest rate and remaining agreed term. We also send a new projection of savings from the date of the change to the end of the loan. Please note, the savings already made prior to the reschedule are not included in the revised projection.

Our Fee Saver deal means no booking fee and no standard valuation fee.

A completion fee is payable in all buyer and package types apart from Remortgage my existing mortgage applications via HSBC UK.

We will cover the cost of one standard valuation where this is required by HSBC as part of the mortgage application.

Other fees and charges may be payable to other parties including, but not limited to legal fees and charges levied by an existing lender.

A booking fee is charged on some of our mortgages to secure a particular mortgage rate or deal. The customer can decide to pay the booking fee in full, alternatively the customer can add the booking fee to their loan. If the customer chooses to add the booking fee to their loan, please make them aware they will pay more interest over the term of the loan than if they pay the booking fee in full at the outset.

Please note our booking fee can be refunded in some scenarios before the mortgage has drawdown, please contact your BDM or our helpdesk for further information.

These are the fees payable to the applicant's solicitor or licensed conveyancer acting on behalf of the applicant and/or HSBC. For details on the conveyancing options available to your customers, see the solicitors section.

HSBC only offer Standard Valuation Reports or a Scottish Transcript as part of our journey. If you require a more detailed type of valuation report (i.e. homebuyers or building survey) this can be sourced by contacting the Bank's valuation panel manager who is arranging the standard valuation or can be obtained independently using the services of an appropriately qualified surveyor. Details of independent surveyors who are qualified to undertake Homebuyer Reports or Building Surveys can obtained via the RICS website.

This fee is to cover the cost of electronically transferring the mortgage funds to our solicitor or licensed conveyancer so they can complete the purchase or redeem the mortgage from the existing lender.

Applicants may have to pay an Early Repayment Charge if they repay the whole or part of their mortgage early (including, if they move to a different product or lender) during a certain period. Early Repayment Charges do not apply to tracker mortgages.

Although Early Repayment Charges apply to our fixed and discount rate mortgages, we provide customers with an annual overpayment allowance equivalent to 10% of the remaining mortgage balance. This means customers can choose to increase their monthly mortgage payments or make lump sum payments up to this allowance each year that Early Repayment Charges apply, without incurring any charges. The overpayment allowance is refreshed annually on the anniversary of the drawdown or the start of the new rate following a switch, and will be based on the current balance at the time. If the customer switches rates before this anniversary date, a new overpayment allowance will commence from the date the new rate begins.

If fixed or discount rate customers exceed their annual overpayment allowance for a given year, an Early Repayment Charge will be charged on the amount they have repaid over the allowance.

HSBC does not currently charge borrowers any exit fee when they fully repay their mortgage.