HSBC increases its mortgage term to 40 years

by Aaron Strutt

Aug 28 2023

HSBC for Intermediaries has announced it is extending its maximum mortgage term from 35 years to 40 years.

HSBC's mortgage term changes will apply to those purchasing a property, remortgaging and applying for additional borrowing. 

Younger applicants applying for HSBC's residential mortgages on capital repayment can access a maximum term of up to 40 years, while those keen to take interest-only will remain capped at 25 years. Second-home terms will no longer be limited to 30 years and can now be considered up to 40 years.

Aaron Strutt, product director at Trinity Financial, says: "More lenders are offering 40-year terms to make it easier for borrowers to access a mortgage and make the monthly repayments more affordable. 

"Extending the term will allow more mortgage holders to reduce the impact of higher rates on their  repayments."

Which lenders offer 40-year mortgage terms?

Many borrowers are taking 35 or 40-year terms to get their mortgages agreed and secure the lowest monthly commitments.

It is not just first-time buyers taking longer terms now, homeowners are remortgaging and extending terms.

Some of the biggest lenders offering 40-year terms include:

• Accord Mortgages offers 40-year mortgage terms
• Clydesdale Bank offers 40-year mortgage terms
• Halifax offers 40-year mortgage terms
• Nationwide offers 40-year mortgage terms
• Skipton for Intermediaries offers 40-year mortgage terms

Taking a longer-term may seem like a good idea to get lower monthly repayments, but it will cost borrowers much more over the life of the loan.

HSBC's lending into retirement mortgage policy

As part of HSBC's responsible lending policy, the maximum age at which a mortgage can be taken depends on the repayment type and is subject to meeting the bank's lending into retirement criteria.

Where an applicant is within ten years of their retirement age, HBSC may ask for further evidence of pension provision if not already provided. The application may be assessed on projected pension income.

Consideration will be given to:

• The period remaining until retirement; the closer the customer is to retirement, the more robust the evidence of income should be.
• The type of employment and whether the customer will be able to continue to work. Although income typically decreases at retirement, HSBC will consider that expenditure may also decrease, such as commuting costs or costs associated with financial dependant's income.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

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