A completion fee is payable in all buyer and package types apart from Remortgage my existing mortgage applications via HSBC UK. This information is correct as of 22nd May 2017, INTERNAL - This content is for the use of FCA-authorised mortgage intermediaries only. Funded from the customer's own resources. Complete a rate-switch or apply for additional borrowing during the Consent to Let period. The minimum property value we accept is £50,000. 1 Rates, discounts and loan amounts depend on specific program and may require certain personal deposit and investment‡ balances, reserves, equity and automatic payment from an HSBC U.S. checking account. Further advances as standalone applications must be no less than £10,000. the employer has the option to determine if a permanent contract will be offered, then the income will not be considered Construction of a new property or the conversion to/refurbishment (Home Improvements excluded) of a residential property. Find the right mortgage now. Mortgage Statements (online statements are not acceptable). All HSBC offices will be closing at 3:00pm on Tuesday, 26 January 2021. For more information, please contact your mortgage professional. Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Please refer to the Armed Forces policy for further information. We’ll find the perfect mortgage broker for you - for free. Please note: for split terms where there are both repayment types, the interest-only maximum LTV will apply to the Scottwood/Swedish are also considered unacceptable for mortgage purposes. The following set of standard mortgage terms is deemed to be included in every Mortgage Form in which this set of standard mortgage terms is referred to by its filing number, as provided by Section 25 of the Land Titles Act, S.N.B. If the customer wishes to instruct a solicitor or licensed conveyancer who does not meet the above criteria, they will still need to provide us with the name, address and telephone number of their chosen firm. in the affordability assessment. Credit commitments are verified, bank statements may be required in some cases. Where the date(s) on the payslip(s) shows as DD/MM/YYYY, all dates must be within 35 days of the application, Where the date on the payslip shows as MM/YYYY, we will accept the payslip(s) which can be either dated in the current or previous calendar month. a maximum LTV of 80%, or 60% if there is any element of interest only borrowing. We do not currently provide guarantor mortgages. This is an internal policy and there are also contractual issues when arranging this between a HSBC appointed representative and the customers selected representative. In order to be considered suitable for mortgage purposes, properties must be habitable with a fully functioning internal kitchen and bathroom and with no restrictions on occupancy. point of application, The number of foster children currently in the applicant’s care, If there are any known or foreseeable changes in the level of foster care income, BTL borrowing greater than £2 million across all lenders; or, More than 50 percent of the customer's total gross income (joint income) is derived from rental income, Four or more BTL mortgaged properties in aggregate at the end of the transaction eg maximum of three BTL mortgaged properties at the end of the residential application), The latest years tax return and/or business accounts (which must be dated within the last 18 months), Customer is paying tax related to their BTL income via PAYE – this will need to be evidenced via a notice of coding and/or payslips; or, Properties have been purchased within the current tax year; or. Advice and applications can only be processed in the UK. Not acceptable As such, the … HSBC Mortgage lending is limited to a maximum of 80% per property. Non Standard Construction Mortgage In the UK there is a huge variation of property types available, some being hundreds of years old while others were finished yesterday. Ensure that if the customer has a correspondence address overseas, any option to receive marketing Offers in Customer Preferences is set to 'No', Any Homeowner Loan applications can only be drawndown into a UK bank account, Debt consolidation loans cannot be used to repay debt held in the US, The customer must evidence that they have lived and worked in the UK for a minimum of 12 months at point of application – evidenced through passport stamp, The customer must have a work permit / visa with at least 12 months left to run until expiry at point of application. Firms that meet this criteria can act for the bank and the borrower but the customer will need to agree the terms and provide us with the name, address and telephone number of their chosen firm. In all other circumstances the total lending amount and overall LTV must: Please note our booking fee can be refunded in some scenarios before the mortgage has drawdown, please contact your BDM or our helpdesk for further information. All Residential Leasehold properties must have more than 30 years remaining after completion of term of the mortgage. A higher interest rate may apply for non-owner-occupied properties, amortizations greater than 25 years, and exceptions to HSBC's standard lending guidelines. mortgaged property, To extend the leasehold on a flat or maisonette, Named applicants must match the property owners, Ad hoc Capital (lending is capped at 50% LTV), Sale of current or planned main residence at the end of the term. Home Loan Terms, and Personal Banking Booklet, fees and charges and lending criteria apply. Under this scenario, a fee may be payable on each portion of the loan and the interest-only maximum LTV will apply to the combined borrowing amount. Getting a mortgage if your property is built from non standard construction e.g. Online statements are not acceptable. To help you find what you're looking for, we've grouped our lending criteria into key categories. Individual cases may be considered under exceptional circumstances. Lump sum from a personal or occupational pension scheme – because of frequent changes to pension policies and regulations which make assessment of credibility difficult. 1 Hong Kong Interbank Offered Rate (HIBOR) as at any date means the Hong Kong Interbank Offered Rate for the interest period of 1 month for Hong Kong Dollars quoted by The Hongkong and … 1981, c. L-1.1. However, you can change your cookie settings at any time. Please note, when an applicant is purchasing a property from a family member separate legal representation is required. The property must not be let on either an Assured Shorthold Tenancy or Holiday Let basis. For more information, please see our Supported Browsers page. In order to confirm to standard definition, the walls of a property are constructed either with stone or bricks and the roofs with tile or slates. For further guidance please refer to the Government website. HSBC can only lend the amount required by the existing lender for redemption.  This means if the lending requested is greater than the redemption figure, the customer will not receive the surplus funds. Where the customer advises they will return to work on the same terms, the normal (pre-leave) income can be used where supported by an employer's letter, Where the customer advises they will return to work on reduced hours, the reduced income should be included. customers borrowing more), Any element of existing Interest Only borrowing, Interest Only (or where the customer has an existing Interest Only Home Loan which has been taken after 27 June 2011. TA’s only apply to existing residential HSBC UK mortgage customers. Our fixed rate and discount mortgages have an annual overpayment allowance equivalent to 10% of the outstanding balance at drawdown or at the start of a new rate switch, giving customers the flexibility to increase their monthly repayments or make lump sum payments up to this amount if they wish. We cannot provide residential mortgage facilities on a property that is used wholly for business purposes or where there are commercial buildings on the same title (for example, a holiday let/cottage). Most people are worried that they won’t be able to get a mortgage on a … While a flat may not seem in the least unusual, … 2021. their application as normal. Before applying for a standalone Additional Borrowing application you will need to confirm the following: We can lend up to the maximum allowable LTV of the discounted purchase price or valuation. Leasehold flats (including flats with a share of the Freehold) are acceptable. What's New 3 12 24 72. Personal Savings Where the deposit has been 'gifted' by a family member, the acting solicitor/conveyancer must obtain a signed letter from the donor to confirm the deposit is a 'non-refundable and an unconditional gift and that no interest is claimed in the property'. We offer mortgage solutions for your international clients seeking a home in the U.S.6 Whether your client is looking for a new home to reside in or an investment property, HSBC is the right partner to make a home ownership a reality. The expertise of a mortgage broker could be priceless. Looking for a non standard, personal construction mortgage? U.S. persons should consult a tax adviser for more information. Whether the benefit payable is in line with the customer's gross annual income. The property being financed must be the primary residence of at least one borrower. combined borrowing amount. We do accept Shared Ownership applications directly in our branches and over the phone. Capital Repayment (including remortgage with additional borrowing, unencumbered properties and existing mortgage as restrictions are eased and they can evidence that their income is no longer impacted, you will be able to submit The main difference is the perceived level of risk, so with non-standard … If you intend to capitalise a booking fee then the loan amount plus the added fee must remain within the LTV Latest private/company pension projection statement, Where an application extends beyond anticipated retirement age but applicant is more than 10 years from this at point of application. Transitional Arrangements (TA) were introduced by the FCA in order to protect customers from becoming a ‘mortgage prisoner’ or ‘trapped borrower’ i.e. Other fees and charges may be payable to other parties including, but not limited to legal fees and charges levied by an existing lender. Woolaway bungalows fall into the non-standard construction list and hence getting a mortgage for a . View our Cookie Policy. HMRC Documentation is acceptable where the self-employed customer meets the following criteria: 3 years' worth of Tax Calculations*, corresponding Tax Year Overviews and portfolio statements – this must detail the nature of the investment and the current value. We do not currently accept any Help to Buy applications via HSBC for Intermediaries. If the applicant is purchasing a property built within the last 10 years, or remortgaging a property built in the last 2 years, we require a suitable structural defects warranty to be in place. This should be done on a pro-rata basis based on previous income, Where the applicant indicates that they do not intend to return to work, or have yet to make up their mind, affordability must be assessed discounting their income. Where an applicant is within 10 years of their retirement age (subject to a system maximum), we may ask for further evidence of pension provision if not already provided and the application may be assessed on projected pension income. All Council Licensed Conveyancers regulated firms can act for HSBC. Other than house boats and mobile homes, there is no particular type of property that we cannot lend against subject to the property meeting our non-standard construction type criteria. You can find answers in our FAQ section. The customer must declare that they have adequate knowledge and experience to evaluate the risks and benefits of Insurance/Investment Documents – must be dated within the last 4 months, must indicate that a customer/financial relationship exists (John Lewis Partnership, Marks & Spencer, First Direct or HSBC documents are not acceptable). PV has been completed). We will only approve where the letting will be on an assured shorthold tenancy or company let basis (England and Wales) Let to buy residential mortgages are not currently available. A/B = Restricted, acceptable at up to 80% LTV, subject to valuer's comments HSBC does not currently provide offset mortgages. The following set of standard mortgage terms is deemed to be included in every Mortgage Form in which this set of standard mortgage terms is referred to by its filing number, as provided by Section 25 of the Land Titles Act, S.N.B. Residents of Saudi Arabia must have a correspondence address outside of Saudi Arabia, in an approved country, where on secondment or travel as part of their job) or is resident in the UK but working overseas on a regular or part-time basis (e.g. Income needs to be current, regular and consistent. If a customer calls us to set up a flexible regular overpayment, we send them a confirmation letter containing a projection of the savings (both interest and term) they could make if they continue to maintain the overpayment. If the customer switches rates before this anniversary date, a new overpayment allowance will commence from the date the new rate begins. Customer will waive their right to HSBC contributing towards the cost of their legal fees. We regularly assist clients with mainstream and complex finance and we are UK specialists in arranging mortgages for clients with non standard requirements. For time served as a LLP partner, income can be evidenced in accordance with the LLP Category Guide. view our foreign currency matrix here: This PDF opens in a new window. 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