Predictable payments for a fixed period of time
A fixed rate mortgage provides the security of fixed mortgage repayments until an agreed date, no matter what happens to interest rates.
And like all of our mortgage products the greater your equity or deposit, the lower your Loan to Value (LTV) ratio is, and so the better the rate HSBC can offer you. The LTV represents the percentage of the value of the property which you are seeking to borrow. For example, a £100k property with an £80k mortgage = 80% LTV.
- The amount you repay each month will stay the same for the fixed term, regardless of what happens to interest rates.
- We offer fixed rate mortgages over 2, 3 or 5 year periods. At the end of the fixed rate period your mortgage will revert to the HSBC Standard Variable rate or HSBC Buy to Let Standard Variable rate unless you successfully apply for another product (e.g. another fixed-rate or tracker mortgage).
- An Early Repayment Charge (ERC) applies to some of our products. As long as you do not exceed your annual overpayment allowance during a year when the ERC applies, you can make as many overpayments as you like within that year. If you exceed your annual overpayment allowance, the ERC will be charged on the amount you have repaid over the allowance.
Key information about our fixed rate mortgages
- Interest rate type: Interest payable will be fixed during the fixed rate period. When the fixed period ends, the rate will move to the HSBC Standard Variable rate or HSBC Buy to Let Standard Variable rate.
- Is interest calculated daily? The interest chargeable on the outstanding mortgage balance is calculated every day rather than at the end of each week, month or year.
- Can I make overpayments without incurring Early Repayment Charges (ERC)? An Early Repayment Charge (ERC) is a charge you may have to pay if you repay the whole or part of your mortgage early (which includes when you move to a different HSBC product or move to a different lender) during a certain period.
You'll have an annual overpayment allowance (AOA) to enable you to make additional payments during the fixed rate period without incurring an early repayment charge. The allowance is equivalent to 10% of the outstanding balance of your mortgage calculated on each anniversary of the start of your fixed rate period. Anything over this will incur an early repayment charge.
- Is there an exit fee? You don’t have to pay an exit fee when you fully repay your mortgage.
- Can I 'port' my loan if I move home? Yes. This is the term used to describe transferring your current HSBC mortgage rate from one property to another when you sell your property and buy another simultaneously. This is subject to terms and conditions.
How to apply
Applying for a mortgage involves two stages, firstly getting a Decision in Principle; secondly making a mortgage application.
Already started an application?
If you started a mortgage application over the phone or online, you can log on to complete it or track its progress.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.