Rising house prices have increased the demand for mortgage brokers in the UK. Find out how HSBC for intermediaries’ online portal equips brokers with products and services to meet this demand
Intermediaries are homebuyers’ bridges to securing the right property in the country. From the term itself, they serve as a mediator between the homeowner and the lending company or bank.
Saving their clients from the trouble of scouring for lenders, queuing for phone calls, and other inconveniences are just the introductory elements as to why UK’s mortgage brokering industry is expected to rise within the next five years.
In line with this, HSBC UK is looking to work with intermediaries across the country. HSBC can partner with intermediaries by offering products and services that are customised for them. As such, we will highlight some of these products and services in this article.
How can intermediaries work with HSBC?
For starters, HSBC has an exclusive website created for intermediaries. Most, if not all, the information needed by an intermediary can be found on this website.
It is an open secret that mortgage lenders provide special mortgage broker-only help lines for intermediaries. Intermediaries can get through a call with the lending bank faster through these help lines.
And true enough, HSBC has provided a phone number for intermediaries through their Broker Support page within the HSBC for intermediaries website. HSBC guarantees that their UK-based Broker Support Team will assist intermediaries with all their concerns and questions.
The top intermediaries in the country will benefit from working with HSBC.
HSBC and intermediaries can work together to help clients achieve their dream of owning a home
Introduction to HSBC for intermediaries
HSBC has reintroduced their prestige service for intermediaries. Their new and improved High Value Mortgage Service, called Large Loans prior to its rename, is a service for mortgages that are priced at £1 million or above.
HSBC provided a three-step approach for intermediaries to guarantee a hassle-free and efficient application process:
Step one: Contact HSBC’s High Value Mortgage Service Team through the email and phone number stated on their website.
Step two: A representative from the High Value Mortgage Service Team will fill out a ‘Customer Assessment Form’ with all the financial information that the intermediary is able to provide. As part of the application, a copy of the form will be sent to the intermediary’s email address.
On HSBC’s side, this document will be the initial basis for HSBC underwriters to decide whether the mortgage application is approvable or not.
Step three: Expect a possible call from an HSBC underwriter if the mortgage request is up for approval. Other matters will be discussed with the goal of expediting the lending decision.
Here is a mortgage amount to maximum Loan-to-Value (LTV) ratio comparison for both capital repayment and interest only mortgage schemes:
|
Mortgage amount |
Maximum LTV on capital repayment |
Maximum LTV on interest only |
|
£1 million |
80% |
75% |
|
£2 million |
75% |
65% |
|
>£2 million |
65% |
50% |
HSBC's product offerings for intermediaries
Aside from the High Value Mortgage Service, HSBC also offers a wide selection of products to aid intermediaries. HSBC's product range ensures that intermediaries will be able to determine the best mortgage rate for their clients, factoring in the latter’s circumstances and preference. These products come in rates that are tailored to different applicants, each having a particular set of criteria.
Buy to Let and Let to Buy property criteria
If the intermediary’s client is searching for a property to lease instead of making it their residence, they ought to apply for a Buy to Let (BTL) mortgage.
On the other hand, if the client already owns and resides in a property but wishes to buy another to move in it, and rent out the previous one, a Let to Buy (LTB) mortgage will be applicable.
Applicants for both Buy to Let and Let to Buy mortgages must not be below 18 years old. As for eligibility, here are HSBC’s conditions:
- they must be residing in the UK
- they must pay the mortgage via rental income alone
- they cannot hold more than 3 BTL mortgaged properties
- they must not be a portfolio landlord
- commercial BTL applications are not allowed
- they must have a minimum basic income of £25,000 yearly, excluding rental income. However, variable income is acceptable
- they must already be an owner of another residential property, mortgaged or completely owned, for a minimum of 6 months. Information verifying that the property does not have any encumbrances should be added to the application
- they can only apply for the maximum LTV amounts that HSBC allows:
- 75% LTV for a £1,000,000 mortgage
- 60% LTV for a £1,000,001 to £2,000,000 mortgage
- 60% LTV for a maximum £50,000 additional borrowing required to consolidate debt
- House in Multiple Occupation (HMO) properties are not allowed
- during the assessment of the property, energy rating will be identified. The property must then have a minimum Energy Performance Certificate (EPC) of E or above
Residential Property criteria
The more common mortgage application is the Residential Property mortgage, which means that the intermediary’s client wants to apply for a mortgage to buy a house and reside in it. Like applicants for both BTL and LTB mortgages, the minimum age requirement for Residential Property applicants is 18 years old. As for the maximum age, HSBC has varying requirements per payment term:
|
Payment Term |
Maximum age (of the oldest borrower for joint applications) at the end of the term |
|
Capital Repayment |
the day prior to the 80th birthday |
|
Fully Funded Interest Only |
the day prior to the 75th birthday. Example of Fully Funded repayment plan: Existing savings - the value of the cash savings is at least 100% of the mortgage loan at the time of application |
|
Non Fully Funded Interest Only |
the day prior to the 70th birthday or anticipated retirement age (whichever is sooner). Example of Non Fully Funded repayment plan: Ad hoc capital - the accrual of earnings to reduce the mortgage balance or to build savings over the mortgage term |
Other documents like evidence of further provision may be required by HSBC if the intermediary’s client is within 10 years of their retirement age.
Affordable housing schemes
The HSBC for intermediaries website does not allow intermediaries to apply for Right to Buy property housing schemes. The same is also true for Shared Ownership schemes. However, interested parties may apply via phone call or go directly to a physical bank of HSBC in the country.
Armed Forces Concession
For intermediaries whose clients are part of the Armed Forces, HSBC offers a flexible service and is dedicated to honour the Armed Forces Covenant.
For these applications, intermediaries should contact HSBC UK direct:
- to let the property while client is on active duty abroad
- Consent to Let requests
- Armed Forces Help to Buy loans
Types of HSBC applicants for Residential Property mortgages
Aside from the conditions, HSBC will also designate what type of applicant the intermediary is. HSBC’s products, as referenced in later sections, are named after their corresponding applicants. Therefore, this action is essential for determining which product is suited for the intermediary-applicant. Below are the types of applicants that HSBC works with:
|
Applicant Type |
Definition |
|
First Time Buyer |
at least one applicant has never previously owned a property in the UK or abroad |
|
Home Mover |
where an HSBC or non-HSBC customer is moving house |
|
Remortgage my existing mortgage |
where an applicant is transferring their borrowing from another mortgage provider to HSBC |
|
Remortgage my existing mortgage with Additional Borrowing |
where an applicant is transferring their borrowing from another mortgage provider to HSBC and is borrowing additional funds |
|
Remortgage my unencumbered property |
where an applicant is borrowing money against a property they own outright, which has no existing mortgage or other charge over the property |
|
Standalone Additional Borrowing (Homeowner Loan) |
where an existing HSBC mortgage customer is borrowing additional funds |
|
Porting |
where an HSBC customer is moving house and wants to transfer the current mortgage rate from one property to another. Only simultaneous porting is available via HSBC UK for Intermediaries where the existing HSBC mortgage must be repaid simultaneously with the drawdown of the new application. |
Foreign nationals residing in the country have a different set of criteria for LTB, BTL, and Residential Property mortgages. Other information can be found on HSBC’s website for intermediaries.
As for the products offered by HSBC for intermediaries, they are categorised into two: New Business Mortgage and Existing Mortgage Customer rates.
New Business Mortgage
The New Business Mortgage category is mainly for new intermediaries who want to apply for a mortgage with HSBC. This product line includes the following:
- First Time Buyer Rate
- First Time Buyer Energy Efficient Homes Rate
- Home Mover Rate
- Home Mover Energy Efficient Homes Rate
- Remortgage Rate
- Remortgage Energy Efficient Homes Rate
- International Residential Purchase Rate
- International Residential Remortgage Rate
- Purchase BTL Rate
- Remortgage BTL Rate
As stated above, remortgaging is one of the many HSBC products under their New Business Mortgage category. Here’s a video from HSBC on the remortgaging process:
Find out how HSBC compares with other top lenders by checking our mortgage rates database. Bookmark this page to monitor the fluctuations of these rates and help you find the LTV ratio, product fees, and other essential figures.
Existing Mortgage Customer
The second category is HSBC’s Existing Mortgage Customer product range. From the name itself, this classification is for intermediaries who have a current application or mortgage deal with HSBC. Here is a list of HSBC’s products under Existing Mortgage Customer:
- Existing Mortgage Customer Borrowing More Rate
- Existing Mortgage Customer Switching Rate
- International Existing Customer Switching Residential Rate
- Existing BTL Mortgage Customer Borrowing More Rate
- Existing BTL Mortgage Customer Borrowing More Rate
Why should intermediaries work with HSBC?
Aside from being one of the largest mortgage lenders in the UK, it’s apparent that HSBC is keen to help intermediaries around the country. As stated earlier, HSBC has created an exclusive website where intermediaries can find all the information they need about HSBC’s lending policy, application details, and products. This is to simplify applications for mortgages, remortgages, and other related transactions.
In case an intermediary still cannot find the information that they’re looking for, HSBC offers additional support through their chat facility. HSBC can also connect intermediaries to field- and phone-based business development managers for further support.
With HSBC, intermediaries can expect more positive results with all their mortgage requests and applications. This will not only help them achieve the target outcome for their client but also help boost their career in the mortgage brokering industry.
Do you think that HSBC is a good lender for intermediaries to work with? Let us know in the comments.
