About HSBC

HSBC is one of the largest financial organisations in the world, serving approximately 39 million customers across 62 countries around the globe. The firm was founded in Hong Kong in 1865 with the aim of establishing a local bank for doing business internationally. 

In its formative years, HSBC helped boost finance trade between Europe and Asia, and over the years, have positioned themselves as an international banking giant.

They are a major player in the UK mortgage sector, with an 8% market share recorded in 2022. They lent £27.5 billion's worth of mortgages during that financial year.

What kind of mortgages do HSBC offer?

HSBC offer a wide range of mortgages for UK borrowers. Their product range is divided into the four broad categories below:

• First-time buyer mortgages
• Homemover mortgages
• Remortgages
• Investment mortgages

The bank's residential mortgage line consists of a range of fixed-rate mortgage and remortgage deals with introductory rates periods of 2-10 years. They also offer tracker mortgages with an initial rates period of two years and have exclusive deals for existing customers.

Exclusive rates are also available through mortgage brokers on occasion. At Teito, we have advisors who have deep working relationships with HSBC, and they often have access to lower rates and incentives from this lender - get started to compare rates and deals for free.

What interest rates are available?

At the time of writing (April 2024), the average rate to expect on a residential mortgage from HSBC is around 4.75% to 5.5% depending on the type of product you choose, the LTV and the overall strength of your application. Their standard variable rate (SVR) is currently 6.99%.

You can compare mortgage rates and deals from HSBC with lenders from across the market for free on Teito or speak to one of our brokers about their products. Choose the option that best suits your needs below:

Affordability and deposit requirements

HSBC cap their maximum borrowing based on multiples of your annual salary. Between 4.49 times income and 4.75 times income is standard for them, but if all of the applicants have a combined income of £100,000 or more, HSBC will consider raising the cap to 5.5 times salary.

Deposit requirements are flexible at HSBC, with options available for borrowers with as little as 5% deposit. Superior deals can typically be accessed for those with at least 10% to put down, though.

Do they offer buy-to-let mortgages?

Yes. HSBC have a range of buy-to-let mortgages available in the UK. To qualify for one, you will need at least 25% deposit and need to have owned and been living in your current home for six months or longer. Other requirements include:

Minimum personal income of £25k

Projected rental income of 125-145% of the annual mortgage payments

You cannot be a portfolio landlord

A maximum borrowing cap of £2 million

The property cannot be an HMO

It must have a minimum valuation of £75,000 and an EPC rating of 'E' or above

You can compare HSBC's buy-to-let mortgage deals with competitors from across the market for free through Teito, and we have expert mortgage brokers on hand to guide you through the process.

Do HSBC offer bad credit mortgages?

Yes, under the right circumstances, but as a high street lender, HSBC isn't quite as flexible with bad credit as some of the specialist mortgage providers.

Severe credit issues such as banruptcies, debt management plans and debt relief orders won't be accepted until they have been satisfied for a minimum of six years, and even more moderate types of adverse such as county court judgements (CCJs), can cause issues if they are still appearing on your credit reports.

HSBC will, however, consider applicants with less severe issues such as defaults (as long as they weren't in the last three years) and missed/late payments.

What is their policy on mortgages for the self-employed?

HSBC will offer mortgages to self-employed borrowers with a minimum of 12 months' accounts. They will base affordability on average net profits from the last two years, or the last 12 months if that figure is lower or the only accounts available.

The bank has options for contractors, limited company directors and sole traders but will not lend to you if your accounts show declining profits.

Is HSBC a good mortgage lender?

HSBC customers have given the bank a review score of 1.4/5 on TrustPilot. This is based on feedback on all of its products and services from more than 8,000 customers.

However, a customer satisfaction survey carried out by Which? found that its mortgage holders gave it an average rating of 65%, ranking the bank in 12th position out of 22 UK mortgage providers. Which? also noted that HSBC was outperforming its competitors in terms of offering affordable mortgage deals. 

Pros and cons

The table below shows the advantages and disadvantages of HSBC as a mortgage lender to give you a clearer idea of whether they are the right option for you:

How to compare HSBC mortgages

You can compare rates and deals from HSBC for free through Teito. One of the main benefits of our service is that we have whole-of-market brokers on hand to help you access the entire market and broaden your search for the right mortgage deal.

Not only do our brokers have in-depth knowledge of HSBC's product range, they can sometimes secure exclusive deals from this lender, and compare their products with equivalents from all of their competitors to check whether there's a more suitable deal for you available elsewhere.

Get started here to compare HSBC's mortgage range with the alternatives and take advantage of a free, no-obligation chat with a mortgage broker today.