Head of Content
Mortgage Advisor & Director
HSBC
About HSBC
HSBC is one of the largest financial organisations in the world, serving approximately 39 million customers across 62 countries around the globe. The firm was founded in Hong Kong in 1865 with the aim of establishing a local bank for doing business internationally.
You can compare the latest mortgage rates available from HSBC with their competitors from across the market for free below:
Compare HSBC Mortgages Online in Seconds
We work with 90+ mortgage lenders from across the market, including HSBC. We can help you compare mortgage rates from different lenders and find the best deal for you.
Use our free comparison tool to compare mortgage rates from 90+ lenders in seconds. We'll show you the latest deals from HSBC and others so you can make an informed decision about which option is right for you.
To get started, fill in our quick online form or call 01484 242424 to speak to our expert mortgage advisers today!
What kind of mortgages do HSBC offer?
HSBC offer a wide range of mortgages for UK borrowers. Their product line is divided into the four broad categories below:
The bank's residential mortgage line consists of a range of fixed-rate mortgage and remortgage deals with introductory rates periods of 2-10 years. They also offer tracker mortgages with an initial rates period of two years and have exclusive deals for existing customers.
Exclusive rates are also available through mortgage brokers on occasion. At Teito, we have advisors who have deep working relationships with HSBC, and they often have access to lower rates and incentives from this mortgage lender
What interest rates are available?
HSBC's mortgage rates are generally competitve with other high street mortgage lenders, and often lower than specialist mortgage providers'.
The exact rate you end up with will depend on the amout of deposit you have, the overall strength of your application and the type of product you choose.
You can compare the latest mortgage rates from HSBC with their competitors across the market using our free mortgage-sourcing tool.
Affordability and deposit requirements
HSBC cap their maximum borrowing based on multiples of your annual salary. Between 4.49 times income and 4.75 times income is standard for them, but if all of the applicants have a combined income of £100,000 or more, HSBC will consider raising the cap to 5.5 times salary.
You can use our mortgage calculator below to get a rough idea of your maximum borrowing at HSBC and lender who use similar income multiples for affordability:
Deposit requirements are flexible at HSBC, with options available for borrowers with as little as 5% deposit. Superior deals can typically be accessed for those with at least 10% to put down, though.
Do they offer buy-to-let mortgages?
Yes. HSBC have a range of buy-to-let mortgages available in the UK. To qualify for one, you will need at least 25% deposit and need to have owned and been living in your current home for six months or longer. Other requirements include:
Minimum personal income of £25k
Projected rental income of 125-145% of the annual mortgage payments
You cannot be a portfolio landlord
A maximum borrowing cap of £2 million
The property cannot be an HMO
It must have a minimum valuation of £75,000 and an EPC rating of 'E' or above
Do HSBC offer bad credit mortgages?
Yes, under the right circumstances, but as a high street lender, HSBC isn't quite as flexible with bad credit as some of the specialist mortgage providers.
Severe credit issues such as banruptcies, debt management plans and debt relief orders won't be accepted until they have been satisfied for a minimum of six years, and even more moderate types of adverse such as county court judgements (CCJs), can cause issues if they are still appearing on your credit reports.
HSBC will, however, consider applicants with less severe issues such as defaults (as long as they weren't in the last three years) and missed/late payments.
What is their policy on mortgages for the self-employed?
HSBC will offer mortgages to self-employed borrowers with a minimum of 12 months' accounts. They will base affordability on average net profits from the last two years, or the last 12 months if that figure is lower or the only accounts available.
The bank has options for contractors, limited company directors and sole traders but will not lend to you if your accounts show declining profits.
Is HSBC a good mortgage lender?
HSBC customers have given the bank a review score of 1.4/5 on TrustPilot. This is based on feedback on all of its products and services from more than 8,000 customers.
However, a customer satisfaction survey carried out by Which? found that its mortgage holders gave it an average rating of 65%, ranking the bank in 12th position out of 22 UK mortgage providers. Which? also noted that HSBC was outperforming its competitors in terms of offering affordable mortgage deals.
Pros and cons
The table below shows the advantages and disadvantages of HSBC as a mortgage lender to give you a clearer idea of whether they are the right option for you:
|
Advantages |
Disadvantages |
|
A wide range of products available |
High income needed to access mortgages based on higher income multiples |
|
Flexible with self-employed borrowers (offers mortgages based on 1 year’s accounts) |
Stringent criteria for buy-to-let mortgages and limited options for portfolio landlords |
|
Low deposit mortgages available (95% LTV) |
Those with more severe bad credit may need to look elsewhere |
|
Able to accept borrowers with some types of bad credit |
Limited options for those who need to use a guarantor |
How to compare HSBC mortgages
You can compare rates and deals from HSBC for free through Teito. One of the main benefits of our service is that we have whole-of-market brokers on hand to help you access the entire market and broaden your search for the right mortgage deal.
Not only do our brokers have in-depth knowledge of HSBC's product range, they can sometimes secure exclusive deals from this lender, and compare their products with equivalents from all of their competitors to check whether there's a more suitable deal for you available elsewhere.
How Teito Works
You have two options when you get started with Teito: you can select the option to speak with an advisor straight away or source a mortgage yourself. If you want to choose your own mortgage deal, follow the steps below:
Click ‘Get Started’
Hit the button below and enter a few quick details. It takes less than 60 seconds to begin the mortgage process with us
Compare Quotes Online
Next you can view rates and deals from across the entire market online and choose the one you want in real time
Apply Online
We’ll take it from here and have an expert mortgage broker on hand to ensure you have chosen the best deal for you
FAQs
No. HSBC do not currently provide offset mortgages. Head to our standalone guide to this product type to find out how to compare rates and deals.