Be clear about any fees you could pay
We'll explain what's meant by each fee to help you understand what may be payable. So, you'll have a better idea of what you may need to pay if you apply for a mortgage with us, want to make changes during your mortgage or to exit your HSBC mortgage.
Fees before your first mortgage payment
Booking fee: £0 to £1,999
This is charged on some mortgages to secure a particular deal. We offer two fee options on our mortgages.
- Standard – these mortgages have a booking fee of £0 to £1,999, but usually have a lower interest rate during the initial fixed-rate or tracker period.
You can pay the booking fee up front, or add the booking fee to your mortgage, which will increase the total cost of your borrowing.
- Fee saver – these mortgages don't have a booking fee.
Completion fee: £17
This is a £17 fee that covers us electronically transferring your mortgage funds to you or your solicitor. It's usually taken within 14 days of the transfer of funds, from the account that you set up to pay your monthly mortgage payment. It will be shown as 'HSBC Mortgage Fee' on your statement.
Free standard valuation: £0
We'll cover the cost of one standard valuation of your property, as this is needed by us as part of your mortgage application. It could be a physical inspection or an electronic valuation. This is to calculate how much we can lend to you, but there's no cost.
This is separate from any valuation or property survey that you might want to carry out for yourself and cover the costs for, such as a homebuyer report or a full building survey.
Legal fees to HSBC: £0 to £295
When you buy a property, you’ll usually appoint a solicitor or licensed conveyancer to complete the necessary legal work. Costs for this vary and will be charged directly to you, from your solicitor who'll confirm the cost.
If your chosen solicitor doesn’t meet our criteria, a separate solicitor will be appointed for HSBC – and you'll be charged £295 for this. If your chosen solicitor is on our approved panel they'll represent you and HSBC, so we won't charge £295.
Other fees and charges may be payable, depending on the type of your mortgage application. We'll explain any relevant fees to you during your application.
Fees for changes during your mortgage
Early repayment charge (ERC)
Fixed-rate mortgage: ERC variable
You may have to pay an ERC if you have a fixed-rate mortgage, and you:
- overpay more than your annual overpayment allowance
- switch your mortgage rate or lender during the fixed period
- take only part of your mortgage with you to a new property
Why we charge ERCs
When you have a fixed rate mortgage with us, we’re expecting that the money you’ve borrowed is kept on that rate until the end of the fixed rate period. So, if you change your rate, repay your mortgage, or repay more than your annual overpayment allowance during that period, there’s a cost to us. The early repayment charge compensates us for this.
How is the ERC calculated?
Tracker mortgage: No ERC
There's no early repayment charge, so you can make unlimited overpayments.
Fee for changing a name on your property deeds: £294
There's a £294 fee if you'd like to add or remove someone from the title deeds of your property, also known as a 'transfer of title fee'. This is to cover the legal work, but additional fees may apply if any other legal work is needed.
Fees when you exit your mortgage
Administration fee for exiting your mortgage: £0
At HSBC there's no administration fee for exiting your mortgage. Some lenders do have an exit fee to cover administration costs.
Early repayment charge (ERC): variable
If you have a fixed-rate mortgage and you decide to close your mortgage during the fixed period, you'll need to pay an ERC. Find out how the ERC is calculated.
Fees in more detail
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
What to do next
Get a Decision in Principle
If you're ready to apply for a new mortgage, start your application with a Decision in Principle.
Switch your mortgage rate
If your fixed-rate is coming to an end, or you're looking for a better deal, find out how to switch.