A guide to getting a mortgage with HSBC during the coronavirus pandemic
It has been harder for the lenders to provide mortgages since the coronavirus hit and booking appointments with mortgage advisers at the big banks like HSBC can take weeks.
Trinity Financial consistently arranges residential mortgages through our online HSBC application systems. Our advisers can get agreements in principle produced quickly, and mortgage applications submitted without delay providing borrowers have a deposit of at least 15%.
Aaron Strutt, product director at Trinity Financial, says: "HSBC is one of the leading providers offering a selection of fantastically priced fixed and tracker rates but it is extremely busy. In order to reduce the number of low deposit applications it receives, the lender has limited its 10% deposit mortgages to people buying houses rather than flats."
One of our brokers has just secured a mortgage offer for a client borrowing just over £1 million in 10 working days, the couple were employed and working for large companies.
Call Trinity Financial on 020 7016 0790 to secure an HSBC mortgage or book a consultation
For applications where borrowers have a deposit of less than 15% the single or joint income multiple is 4.49 times salary for those with an income of less than £30,000. This increases to 4.75 times income for applications with an income of £30,000 or more and rises to five times income for applications with income in excess of £100,000.
For applications where the borrower(s) have less than a 15% deposit the mortgage income multiple is 4.49 times income for applications with income less than £100,000. This rises to 4.75 times income for applications with an income of £100,000 or more.
HSBC uses mortgage affordability calculations to work out how much you can borrow and credit cards, loans and ongoing credit commitments are likely to reduce the amount you can borrow. Children and school fees will also lower the maximum loan size.
If you are looking for a mortgage through HSBC, once our brokers have submitted your application it is taking approximately five working days for the cases to be assessed by the bank's staff for employed borrowers. It is slower at 11 working days for self-employed borrowers.
If you are applying directly for a mortgage there is limited data about how long it will take to secure a mortgage. The benefit of using a firm like Trinity Financial is that we have direct access to specialist staff at HSBC and they are helping to progress urgent applications where possible. Our brokers can also secure a very quick decision in principle to confirm if you are likely to qualify for the mortgage.
HSBC is one of nearly 50 lenders offering interest-only mortgages.
For single applicants applying to HSBC for an interest-only mortgage, they will need to have an annual minimum income of £100,000 and for joint applications, at least one applicant must have an annual minimum income of £100,000.
HSBC will use employed income with the basic salary plus fixed allowances excluding bonus, commission, overtime and rental income. For self-employed borrowers, HSBC will accept net profits plus the director's salary.
HSBC allows debt consolidation for remortgage purposes although the bank has a list of requirements customers will need to meet.
The maximum amount on credit cards and loans that can be repaid during the remortgage process is £50,000 taking the overall loan-to-value up to 80% of the property value. This reduces to £50,000 and 60% of the property value if any part of the mortgage is on interest-only.
HSBC states that at all debt commitments will still be included in the affordability assessment unless it can be shown the commitment finishes in the next six months.
HSBC will accept a large number of foreign currencies for UK mortgages through HSBC for Intermediaries.
This bank has a list of countries on its website and takes income from at least 70 of them.
The main currencies it accepts for affordability purposes include the Euro, US Dollar and the Hong Kong Dollar. It will take income earned in the following currencies: Swiss Franc, Norwegian Krone, Russian Ruble, Qatari Rial, New Zealand Dollar and the Australian Dollar.
HSBC's mortgage offers are valid for 180 days from the date the offer is issued.
HSBC's mortgages have different maximum loan sizes depending on the size of your deposit.
This table highlights the limits.
| Deposit size | Maximum loan |
| 10% | £400,000 |
| 15% | £500,000 |
| 20% | £1,000,000 |
| 25% | £2,000,000 |
| 30% | £3,000,000 |
| 40% | £5,000,000 |
HSBC is offering a range two, three and five-year fixed-rate and two-year tracker rate mortgages.
The most competitively priced mortgages are available to those with a 40% deposit although the 15% deposit rates are also surprisingly cheap.
HSBC's most competitively priced mortgage is as low as 1.14% and it is fixed until 31 December 2022. It has a £999 arrangement fee and the maximum loan size is £5 million. The overall cost for comparison is 2.96% APRC representative.
The bank's latest longer-term mortgage is priced at 1.34% and fixed until the 30 December 2025. The product has a £999 arrangement fee and the maximum loan size is also £5 million. The overall cost for comparison is 2.99% APRC representative.
After the fixed period, both of these rates will revert to the lender's standard variable rate of 3.54%. The lender provides a free property valuation and legal service if you remortgage to reduce the cost of switching.
1)You contact one of our mortgage experts by calling 020 7016 0790 or completing our basic enquiry form or mortgage questionnaire.
2)Tell us what you are looking for and we will assess your mortgage needs based on your monthly budget.
3) We collect the information and documentation the lenders will need.
4) Based on the information supplied, we provide you with illustrations for the most suitable products for your
circumstances.
5) We then submit the application on your behalf to secure a mortgage offer as quickly as possible. This is once you have confirmed you are happy to proceed.
6) We manage the application through to completion and liaise between all involved parties such as valuers, estate agents
and solicitors.
7) Post-completion we are available for any questions. When you reach the end of your initial product, we are
also able to discuss any further mortgage, will or financial protection product requirements such as life insurance, income protection and Wills.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
