Winner of What Mortgage 2005 (Over 2, 5 and 10 Years)

The Honkong Shanghai Banking Corporation Limited, HSBC, is an international bank with offices and branches in 77 countries. It has nearly 200,000 shareholders worldwide.

With the HSBC choose Capital Repayment mortgage or an Interest only mortgage.

A Capital Repayment mortgage means that each of your monthly repayments covers the interest and some of the initial loan. If all the payments are made along the mortgage term the interest and mortgage will be fully repaid.
An Interest Only mortgage means that each of your monthly payments only cover the interest incurred on the loan. The initial money borrowed is still outstanding during the term of the loan, and you are liable for making arrangements to repay the capital.
HSBC also offers a combination of the two options above, Home Start Mortgage, which offers lower payments at the start of the mortgage giving you more flexibility in your life

HSBC offers two mortgage products: Variable rate and Fixed rate products

Variable Rate: There are no overpayments nor early repayment charges. HSBC’s policy is to amend its rates so they are no more than 1% above the Bank of England Base Rate for the length of the loan.

Fixed Rate: Repayments are constant each month during the fixed rate period and are not affected by the variations of the Bank of England Base Rate.

HSBC helps you release the equity in your home. With a minimum of 5 years and a maximum of 40 years, repayment options are Capital Repayment, Interest Only or a combination of both.

HSBC also have a range of specialist mortgages:

Graduate Mortgages
Buy to Let
Amanah Finance

Graduate Mortgage: you can choose whether to benefit from HSBC’s variable or fixed rate products. This product is available up to 5 years after graduation. You can borrow up to 100% LTV or the purchase price, whichever is lower. This product has the HSBC Home Start feature, that is repayments in the first 3 years cover interest only then they go back to capital and interest repayments for the remaining period.

Buy to Let: you can select from HSBC’s variable or fixed rate buy to let products, where you can borrow up to 75% LTV or the purchase price, whichever is lower.

An arrangement fee is payable
Early repayment charges apply for Buy to Let fixed rate mortgage

Amanah Finance: these are specialist products suited especially to Muslims living and working in the UK.

Pension Mortgage
Bank Account Plus
Equity Release Loan

Pension Mortgage: you put money into a pension plan. You are repaid at retirement when a proportion is collected as a lump sum, free of income tax and capital gains tax.

This plan is for customers who are 18+
It suits those who are self-employed
Or if you are not a member of a company pension scheme.

Bank Account Plus: if you have a Bank Account Plus with HSBC you can get £100 cashback when you take out a new mortgage

Equity Release Loan: you can unlock the equity in your home. You can choose from variable of fixed rates.