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20 May 2017, HSBC for Intermediaries

Changes to our mortgage products

We are pleased to share our latest policy enhancements that we are making to our mortgage proposition.

Please refer to the Lending Criteria Guide for full details of the enhancements.

On Monday 22nd May, the following changes will take effect to our Residential mortgage proposition:

Minimum Income Criteria

The current minimum income criteria of £15,000 for capital repayment mortgage lending will cease. Please note, there is no change to the current minimum income criteria for Non UK residents and Interest Only applications.

Debt Consolidation

Our lending guide has been updated to provide additional clarity regarding a number of common scenarios regarding debt consolidation and whether these would be classed as acceptable to HSBC or not. The scenarios are:

  • Monies borrowed from family and friends
  • Repayment of funds obtained from the customer’s business
  • Repayment of second/subsequent charge
  • Repayment of a contractual debt

For affordability purposes, all existing debt commitments (Internal and External) must be included within the affordability assessment and cannot be removed at point of sale regardless of whether they are to be repaid from the proceeds of the loan.

Please note that pipeline cases with a full credit decision obtained prior to 22 May 17 will be approved subject to existing policy.

Security Policy

An enhancement to the existing policy, clarifying that we will no longer allow mortgage applications where the property is being purchased via a Sub-sale transaction (including back to back transfers and contract assignments) or where the property is subject to an excessive or unreasonably escalating ground rent.

This website is for the use of FCA authorised mortgage intermediaries only.

If you reproduce any information contained in this website, to be used with or advise clients, you must ensure it follows the FCA's advising and selling standards.

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