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Payment choices

Choose from two ways of repaying your mortgage that best suit your circumstances

Understand your repayment options

You can opt for capital repayment or interest only arrangements on your HSBC mortgage, according to your needs.

Here we lay out the options for you to consider carefully.

Capital Repayment

With a capital repayment plan, your monthly payment covers the interest charged on your mortgage and it also reduces the outstanding balance each month in line with the term selected. With this repayment plan, you can ensure your mortgage is fully paid off at the end of the mortgage period.

What you get with the repayment option:

  • Interest and capital repaid

    Your monthly payment covers the interest and also reduces the total balance outstanding

  • Secure

    Providing all payments are made, the mortgage will be repaid in full at the end of the agreed mortgage term

  • Choose your repayment term

    Up to a maximum of 35 years

Capital repayment is a repayment option on all of our mortgage products: fixed rate and tracker mortgages.

Interest only

With an interest only mortgage, your monthly payment covers only the interest on your loan, enabling you to invest to pay off your mortgage at the end of the mortgage term or freeing up cash to spend elsewhere.

By repaying only the interest on your mortgage, your monthly payments are lower than with an equivalent capital repayment mortgage.

Note: You are responsible for making your own arrangements to repay your mortgage at the end of the mortgage term. This could be through an endowment scheme or some other savings and investment plan. Your home may be repossessed if you do not have sufficient funds to repay the capital balance outstanding at the end of the term.

In order to qualify for our Interest only mortgages:

  • Sole applicants must have a minimum income of £100,000 per annum excluding bonus, commission, overtime and rental income
  • For joint applications, at least one applicant must have an individual income of £100,000 per annum excluding bonus, commission, overtime and rental income
  • For a Buy-to-Let Interest only mortgage, you must meet our Buy-to-Let criteria.

What you get with the interest only option:

  • Interest only

    The monthly payment covers just the interest and the original capital amount borrowed remains outstanding throughout the term of the loan

  • Lower monthly payments

    Because you are not repaying the capital your monthly payments will be lower than with a capital repayment mortgage

  • Choose your mortgage loan term

    Up to a maximum of 25 years

  • Lower borrowing limit

    Up to a maximum of 75% loan to value of the purchase price or the valuation of your property (whichever is lower) - this is also known as your loan to value. For example a £100k mortgage with a £80k mortgage = 80% loan to value 

The table below shows the LTV bandings we offer:
Borrowing amount
Maximum loan to value
Up to and including £400,000
75%
Over £400,000 to £1 million
75%
Over £1 million to £2 million
65%
Over £2 million
65%
The table below shows the LTV bandings we offer:
Borrowing amount
Up to and including £400,000
Maximum loan to value
75%
Borrowing amount
Over £400,000 to £1 million
Maximum loan to value
75%
Borrowing amount
Over £1 million to £2 million
Maximum loan to value
65%
Borrowing amount
Over £2 million
Maximum loan to value
65%

If you are interested in applying for a part capital repayment mortgage and a part interest only mortgage, please call us on 0800 169 633.

Important considerations

You must be able to demonstrate you have a suitable repayment strategy in place.

Get an idea of what your mortgage could look like with one of our Calculators.

When you are considering your repayment strategy the following applies:

  • Property: you can only use up to 75% of its value and this should not be from the sale of your main residence
  • Endowments: should be based on their surrender value
  • Other investments / insurance policies: should be based on their current value.

Contact us

How to apply

New Application

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 login 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 to Friday 8am - 9pm, Saturday 8am - 8pm, Sunday 9am - 6pm. Calls may be monitored and recorded. Opening hours within the mortgage departments may vary.

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