Mortgage Costs and Mortgage Fees with HSBC | HSBC UK

 

Understanding our fees

A range of fees are payable when you take out an HSBC mortgage. Here the fees are explained and itemised. Click on the name of the fee to view details.

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  • Arrangement fee

    The fee charged by a lender to cover the administration involved with arranging the loan.

  • Service fee

    The fee charged by a lender who, with the customer's written consent, requests details from their existing mortgage lender.

  • Booking fee

    A non-refundable fee charged on some mortgages to secure a particular mortgage deal.

    You may be able to add some or all of the booking fee to your mortgage. Adding fees to your mortgage will mean that you will pay more interest over the term of the loan, than if you had chosen to pay the booking fees at the outset. If you would like to consider adding the booking fee to your mortgage, please call us or visit your local HSBC branch where we will be happy to discuss your requirements.

  • Building Survey and Valuation Report

    This is commissioned for the customer's information. It provides a full picture of the properties construction and condition. This includes subsidence, foundations, external walls, the history of the property and future maintenance.

  • Completion fee

    The lender charges this fee to cover the cost of electronically transferring the mortgage funds to the borrower.

  • Early Repayment Charge

    An Early Repayment Charge (ERC) is a charge you may have to pay if you repay the whole or part of your mortgage, by paying it back early (which includes if you move to a different product or move to a different lender) during a certain period.

    Customers with HSBC Fixed or Discount Rate Mortgages can make overpayments of up to 20% of their standard monthly payment, without incurring an Early Repayment Charge (ERC) provided that the overpayment is a regular monthly overpayment by direct debit rather than a one-off.

    For Fixed or Discount Rate mortgages, customers making overpayments outside of the above criteria will incur an ERC. An ERC will also apply where the customer repays, by any other method, the whole or part of their mortgage, over and above their standard monthly payment, during the fixed or discount rate period. The ERC will be 1% of the amount overpaid or repaid early multiplied by the number of years remaining of the fixed or discount rate period, reducing daily.

    For example: A customer paying off their full mortgage of GBP 100,000, who has 18 months (547 days) remaining on their fixed rate period. The ERC would be: GBP 100,000 x 1% divided by 365 x 547 days = GBP 1,498.63

    Early Repayment Charges do not apply to tracker rate mortgages.

  • Exit fee

    This is a closure administration fee payable to service providers when you fully repay your mortgage. HSBC do not currently charge an exit fee.

  • Fee Saver

    Fee Saver means no booking fee, no standard valuation fee, no completion fee. We will cover the cost of one standard valuation where this is required by HSBC as part of your mortgage application.

    Other fees and charges may be payable to other parties including, but not limited to legal fees and charges levied by your existing lender.

  • Homebuyers Survey and Valuation Report

    This is commissioned for the customer's information. It is designed as an economy package and so concentrates on defects and problems that are urgent or significant. It does not explore structural aspects or detail remedial works.

  • Legal fees

    These are the fees payable to your solicitor or conveyancer to represent you.

    When you are buying a property both you and HSBC will need a solicitor or conveyancer to complete the necessary legal work. When you process your mortgage application with HSBC you have three options:

    • HSBC can introduce you to Countrywide Conveyancing Services who manage a panel of solicitors and conveyancers for HSBC. If you use one of the panel firms, the bank will instruct the same firm to act for it. This will be at a competitive fixed conveyancing fee that covers the conventional work carried out on a purchase case.
    • Choose from a range of solicitor firms that have achieved accreditation under the Law Society's Conveyancing Quality Scheme (CQS) and who can normally act for both you and HSBC. This option is available with English and Welsh properties only. You will need to agree terms with your chosen firm. They may offer fixed or variable legal fees and other features.
    • You can choose your own solicitor or conveyancer to represent you. If you do, we will use a firm from our panel to represent HSBC. This will cost £160 + VAT, which you will have to pay in addition to your own solicitors fees.
  • Standard Valuation Report

    This report is solely for the purpose of arriving at a current market value to enable the lender to determine the amount of the advance. It should not be relied on by the customer to assess the suitability or saleability of the property.

Vase

Your home may be repossessed if you do not keep up repayments on your mortgage.

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