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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.
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.
Your monthly payment covers the interest and also reduces the total balance outstanding
Providing all payments are made, the mortgage will be repaid in full at the end of the agreed mortgage 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.
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.
The monthly payment covers just the interest and the original capital amount borrowed remains outstanding throughout the term of the loan
Because you are not repaying the capital your monthly payments will be lower than with a capital repayment mortgage
Up to a maximum of 25 years
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
| 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% |
| 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†.
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.
Applying for a mortgage involves two stages, firstly getting a Decision in Principle; secondly making a mortgage 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.