Buying a property requires a long-term financial commitment so you should do your homework to get the best mortgage rates and HSBC mortgage can help. Depending on the price, the monthly payment can start hundreds of dollars with interest.
HSBC provides mortgage packages suited for every type of consumer. HSBC mortgage rates are competitive, and usually depend on the type of mortgage. For instance, if you choose the fixed-rate mortgage, the rate will stay the same for the entire term, regardless if the rate goes up or down.
Interested to get an HSBC mortgage? You can choose the best mortgage to lighten your financial load and enjoy more savings. Read on to know the best mortgage plan for you. We’ve compiled the types of mortgage offered by HSBC, the interest rates, and the application process.
Types of HSBC Mortgages
HSBC offers four mortgages for customers planning to buy a property. These four are Fixed Rate, Standard Variable Rate, Interest-Only, and Tracker Mortgages.
Fixed-Rate
Based on its name, the Fixed-Rate mortgage has fixed interest for the specific term, usually two to ten years. Customers can enjoy more breathing space because they are aware of the monthly repayment.
Standard Variable Rate
In the SVR mortgage, HSBC decides the rate and when to increase or decrease it over a period of a customer’s mortgage. Usually, the increase in interest rate comes after the introductory period.
Interest-Only
Under the Interest-Only mortgage, a customer settles the interest first before the borrowed amount is settled. This way, the amount a customer owes doesn’t increase, as the interest is already paid.
Tracker Mortgages
The Tracker Mortgage follows the Bank of England’s Base Rate. If the rate increases, the customer’s monthly repayment will also increase. Similarly, when the base rate decreases, the mortgage interest rate will also decrease.
Interest Rates
The interest rate for fixed mortgage starts at 1.14 percent for a 2-Year fixed standard mortgage. Expect a higher interest for 90 percent Loan to Value (LTV). Only first-time homebuyers can enjoy up to 95 percent Loan to Value, with a 35-year term.
For Tracker Mortgages, borrowers can loan up to 90 percent Loan to Value with 2.09 percent interest for a 2-year term. The interest rate decreases to 1.34 percent with a lower Loan to Value of 60 percent.
For Standard Variable Rate and Interest-Only mortgage, the interest starts at 3.54 percent or higher, depending on the loan amount and term.
Application Process and Requirements
Prior to making a mortgage application, interested parties need to get a Decision in Principle or Agreement in Principle. To apply for a Decision in Principle, you may contact HSBC over the phone or through their website.
After receiving the Decision in Principle, applicants can choose to receive mortgage advice or not, then complete the application entirely online. Note that only UK residents are allowed to submit applications at the moment because physical valuation is on hold.
Some of the requirements for HSBC mortgage include a valid, government-issued identification card, proof of residence, proof of income, and bank statements.
HSBC Contact Information
You may reach HSBC through the Live Chat online or by contacting their customer support hotline at +44 800-169-6333. The line is open from Mondays to Fridays, from 8:00 am to 8:00 pm and on Sundays from 9:00 am to 6:00 pm.
Conclusion
HSBC offers low and competitive interest rates for mortgages. Individuals who are planning to buy a property can consult a mortgage specialist at HSBC to know more about the financing options and the total amount you can borrow.
Note: There are risks involved when applying for a mortgage. Consult the bank for more information.
