Why Remortgage to HSBCHSBC is one of the biggest lenders in the UK, offering cheap, market-leading rates. Premier customers or higher earners can access special Premier rates. HSBC covers conveyancer costs and provides free valuations, and their exit fees are low and more favourable than most of the market.

What Products Do HSBC Offer?

HSBC offers a variety of mortgage products including fixed, tracker, variable, repayment, and interest-only mortgages. Fixed-rate mortgages are available for terms of 2, 3, and 5 years.

How Long Does an HSBC Mortgage Take?

The timeline for an HSBC remortgage generally involves 1-2 weeks for the application to be processed and an offer to be made. The conveyancing process typically takes between 5 to 9 weeks.

What Fees Are Involved in an HSBC Remortgage?

While specific fee details can vary, common fees in an HSBC remortgage may include arrangement fees, which can sometimes be added to the mortgage, and potential broker fees if you are using a mortgage broker. However, HSBC often covers conveyancer costs and valuation fees as part of their service.

What Are the Alternatives to Remortgaging?

Alternatives to remortgaging include:

  • Product Transfer: Staying with your current lender and switching to a new mortgage deal.
  • Further Advance: Borrowing additional funds from your existing lender.
  • Second Charge Mortgage: Taking out a second mortgage while keeping your first mortgage in place.

What Considerations Should Be Made with Time When Remortgaging?

Consider the timing of your remortgage to avoid early repayment charges from your current lender. Also, allow sufficient time for the application and conveyancing process to ensure a smooth transition to your new mortgage deal. Plan ahead to avoid lapsing into the standard variable rate of your current lender, which is often higher.

How Much Do HSBC Lend on a Remortgage?

HSBC typically lends 4.5 to 5 times the applicant’s income. For higher earners, this can be up to 5.5 times their income. For example, a £50,000 salary could potentially secure a £250,000 mortgage.

How to Improve Your Chances of Success When Remortgaging

To improve your chances of a successful remortgage application with HSBC:

  • Maintain a Strong Credit Score: Ensure timely payments on all debts and avoid taking on new debt before applying.
  • Stable Employment: Demonstrate stable and continuous employment.
  • Reduce Debts: Lower your existing debt levels to improve your debt-to-income ratio.
  • Save a Larger Deposit: A larger deposit can lead to better mortgage rates and more favourable terms.
  • Prepare Documentation: Have all required documents ready, such as identification, payslips, bank statements, and your current mortgage statement.

By following these guidelines, you can increase your chances of securing a favourable remortgage deal with HSBC.

HSBC Remortgage Eligibility

Deposit Requirements:

  • Minimum Deposit: Generally, you need a minimum of 10% equity in your property for a remortgage with HSBC.
  • Better Rates with Larger Deposits: Larger deposits can secure better mortgage rates.
  • Flats and New Builds: HSBC requires a 15% deposit for flats and larger deposits for new build properties.

Income and Affordability:

  • Income Multiples: HSBC typically lends 4.5 to 5.5 times your income, depending on your financial situation.
  • Self-Employed Applicants: Self-employed individuals need to provide two years of accounts, with HSBC usually taking an average of the last two years’ income for affordability calculations.

Meeting these criteria enhances your eligibility for a remortgage with HSBC, ensuring you have the required deposit and meet the income standards.

Maximum Term for HSBC Mortgage

The maximum term for an HSBC mortgage is up to 40 years or until the borrower reaches the age of 75 or 80, whichever comes first. This extended term is one of the longest available on the market, offering flexibility and potentially lower monthly payments for borrowers.

Loan to Value for Flats with HSBC

HSBC requires a minimum deposit of 15% for flats. This means the loan-to-value (LTV) ratio for flats must be 85% or lower. This higher deposit requirement ensures better security for the lender and may result in more favourable mortgage terms for the borrower.

HSBC New Build Mortgage

For new build properties, HSBC has specific deposit requirements:

  • Flats: A minimum deposit of 20% is required.
  • Houses: A minimum deposit of 15% is required.

These requirements help mitigate the higher risks associated with new build properties and ensure better security for both the lender and the borrower.

HSBC Buy to Let Remortgage

HSBC offers competitive buy-to-let remortgages, with the amount you can borrow based on the rental income of the property. Key requirements include:

  • Homeowner Status: You must be a homeowner occupier to qualify.
  • Minimum Income: You need a minimum annual income of £25,000.
  • Rental Income Assessment: The loan amount is determined based on the rental income generated by the property.

These criteria ensure that you have the necessary financial stability and property management experience to manage a buy-to-let mortgage effectively.

When Can I Remortgage to HSBC?

You can start the remortgage process with HSBC at any time, but it’s important to consider the timing to avoid early repayment charges from your current lender. Typically, it’s best to begin the process 3-4 months before your current mortgage deal ends.

How Long is an HSBC Remortgage Offer Valid For?

An HSBC remortgage offer is usually valid for up to six months. This gives you ample time to complete the necessary steps, including the valuation, legal work, and any other requirements, to finalise your remortgage.

How Can Strive Help with Your HSBC Remortgage?

At Strive, we can assist with your HSBC remortgage by offering access to exclusive HSBC rates and comparing these with the whole market to ensure you get the best deal. We manage the entire process from start to finish, handling all necessary paperwork, communications, and arrangements. We provide comprehensive advice and support at every stage, making the remortgage process smoother and more efficient. Our expertise can help you navigate eligibility requirements, improve your application success, and secure favourable terms for your remortgage.

Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.

For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.