When you move your mortgage to HSBC you'll be remortgaging – changing your existing mortgage deal. The remortgaging process is straightforward and works in a similar way to getting a standard mortgage: you'll need to apply for a Decision in Principle and then for the mortgage itself.
Table of contents
1. Deciding to remortgage
Your first step is to work out whether it's the right time for you to move your mortgage to HSBC.
You might be considering remortgaging because:
- the fixed rate on your current mortgage is coming to an end
- you want a better deal that will save you money on your current mortgage
- your financial circumstances are about to change
- you'd like to fix your mortgage rate for a few years
- you're considering borrowing more – for home improvements or to consolidate existing loans or credit card debts
You can find and compare HSBC mortgages online but it's worth bearing in mind the following:
How much to borrow
You can use our mortgage calculator to get a quick indication of the maximum you could borrow, please note this doesn't factor in your individual circumstances and we strongly recommend you follow this up with a Decision in Principle.
Your property may be worth more now than when you took out your original mortgage. This could mean that your Loan to Value (LTV) ratio will be lower than when you took out your original mortgage. For example, if you brought your home for £200,000 and took out a repayment mortgage of £170,000. At the time of purchase, this would give you an LTV of 85%. A few years down the line you may only have £100,000 outstanding on your mortgage, therefore your new LTV would be 50%. A lower LTV ratio is good news because the rates available are more likely to be better than higher LTV mortgages.
Make sure you consider all the costs of remortgaging, rather than going straight for the deal with the lowest interest rate. These may include booking fees, completion fees and legal fees. Your current lender may charge you an exit fee and, if you're breaking the terms of your current mortgage – for instance, leaving before a fixed rate period is up – you may have to pay an early repayment charge.
We'll carry out a Standard Valuation of your property to confirm its value. This is for our benefit as a mortgage lender. We don't charge Standard Valuation fees on our residential mortgages.
If you're looking to remortgage because your current fixed rate is coming to an end, plan for your new mortgage to start immediately after the fixed period has ended to avoid those early repayment charges.
It can take 8 to 12 weeks to move your mortgage, so don't leave your application to the last minute.
2. Getting a Decision in Principle
Once you've decided to move your mortgage to HSBC, the next step is to apply for a Decision in Principle. This will show how much you might be able to borrow from us.
It doesn't commit you to anything and it's not a guarantee that we'll lend to you.
You can get a Decision in Principle over the phone, in branch or online. It's based on what you tell us, our security checks and a soft credit check, which will have no impact on your credit score. We'll only carry out a full credit check when you apply for your mortgage.
3. Applying for a mortgage
If you're happy with the Decision in Principle you can go ahead and apply for your new mortgage.
You'll need to provide supporting documents so we can confirm your income and other details. This will include paperwork for your current mortgage and home insurance cover. Have all this ready to help the process go as smoothly as possible.
Applying in a branch or over the phone
- Arrange an appointment with one of our mortgage advisers. They'll advise you and take you through your application
- Before your mortgage appointment, provide us with your supporting documents. This will be explained to you when you make your appointment.
- If you know what mortgage you want to apply for, you can apply online without contacting us but you won't receive any advice
- The quickest way to share your documents with us is to use our Mortgage Document Uploader service. We'll email you the link for this after you've completed your application.
Once we've got all the information we need, we'll review your application and let you know the decision as soon as possible by phone, email or text.
4. Conveyancing options
Moving your mortgage does involve some legal work.
You may have the option of choosing a bank appointed panel solicitor where the standard legal fees are covered by us.
You may be able to appoint your own solicitor or licensed conveyancer to act for us both, as long as they meet our criteria. You’ll pay all the legal fees for this.
If any additional legal work is required, you will be responsible for these costs.
5. Valuing your property
We'll arrange for your property to be valued to check that it will provide security for your proposed new mortgage. We won't charge you for this.
6. Reviewing your mortgage offer
If we've approved your mortgage application, we'll send you the offer documents to review, usually by email. You don't need to contact us unless there's anything you don't understand or if something appears to be incorrect.
7. Finalising the legal work
One of our conveyancing firms will contact you 2 to 5 working days after you've applied to ask you for a little more information about your circumstances.
They will carry out the necessary legal checks and ask your current lender exactly how much you owe on your mortgage.
Finally, they'll send you the legal mortgage document to read and sign in the presence of a witness. Review it carefully.
8. Setting a completion date
Once all the legal work is done you can agree a completion date with your solicitor or licensed conveyancer. This is the date when we'll release the funds for your mortgage and pay off your mortgage with your previous provider.
You've moved your mortgage to HSBC.
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.
† Lines open Monday – Saturday 08:00 – 20:00, Sunday 09:00 – 18:00. Calls may be monitored and recorded. Opening hours within the mortgage departments may vary.