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.