This article discusses HSBC Bank Mortgages. HSBC offers a range of different mortgages that are designed to fit the needs of all different types of customers. HSBC mortgages will vary from time to time possessing different levels of both security and flexibility. Mortgage types are offered to specific buyers or are subject to a maximum Loan to Value (LTV). There are three types of mortgages offered the UK market that include:
- Fixed rate HSBC mortgages are offered for two, three and five-year terms. At the end of your selected term, the mortgage will revert to an HSBC variable rate unless you choose to move it to another mortgage product, such as a different fixed-rate or tracker mortgage
- Tracker mortgages are what HSBC terms as “lifetime” trackers that follow the “base” rate for the loan life. As the base rises and falls, so will this mortgage rate which affects monthly repayments
- A discount-rate mortgage carries a variable rate set internally by HSBC for an agreed period, usually two years. Monthly payments will rise and fall in accordance with the fluctuating of the variable rate
Types of HSBC Mortgages
Choose from two mortgage repaying methods that suit your personal needs.
HSBC Capital Repayment Mortgages
Make monthly repayments that cover the interest charged on your loan also reducing the outstanding balance. Using this repayment plan you can make sure that your mortgage is fully repaid at the end of the term.
HSBC capital repayment mortgages are a secure repayment method that makes sure your entire loan is repaid at the end of the agreed-upon term as long as each and every monthly repayment is made. You can select up to a maximum 30 year repayment period. This payment option is available for all HSBC mortgage products that include fixed rate, tracker and discount mortgages.
HSBC Interest Only Repayment Mortgages
Choose this option where your monthly repayment covers only the interest charged on the loan. This will allow you to spend elsewhere what would have been an additional amount required in the Capital Repayment option. You may be able to invest the difference that will lead to a sizable return so you can pay off the loan at the end of the mortgage term. Choosing an Interest Only option allows you to have the lowest monthly repayments on all the products offered. It will be up to you to make your own arrangements to repay the mortgage at the end of the term with some other scheme such as an endowment, investment or savings plan. Features of an interest only loan include:
- Monthly payments cover just the interest
- Monthly payments are lower than a capital repayment choice
- You are allowed up to a maximum of 40 year loan term
- You are allowed a borrowing limit up to 75 percent of the actual purchase price
- Interest only loans are available to customers seeking to remortgage a competitor’s loan.
HSBC Bank issues recommendations to potential HSBC mortgage customers. An assessment is conducted that will narrow down the selection of products that the company decides will be offered to an applicant based on their individual financial situation and needs.