HSBC mortgage application (5 Key Rules)

In this brief blog, we are going to discuss the HSBC mortgage application. This guide will provide you with all the information you may need when making a HSBC mortgage application, all in one place.

The HSBC mortgage application

HSBC is one of the biggest mortgage lenders in the UK. If you find that you want to make a HSBC mortgage application then you should ensure you put everything in order to avoid any delay to your HSBC mortgage application.

You can do your HSBC mortgage application online, in branch or over the telephone. You can choose to receive mortgage advice from HSBC on any of the mortgage products which HSBC offers.

If you are using a mortgage broker then your mortgage broker will help you in completing your HSBC mortgage application.

If you do your HSBC mortgage application online then you will be provided with a username from which you can start your HSBC mortgage application, pause it and continue it at any time in the future.

HSBC offers first-time buyer mortgages, buy to let mortgages and remortgages.

You can view an up to date list of fees you should take into consideration when making your HSBC mortgage application here.

Getting a HSBC mortgage or decision in principle

Applying for a HSBC mortgage in Principle is the second main stage of the HSBC mortgage application process. A HSBC mortgage in principle can be done over the phone, in branch or online.

A HSBC decision in principle will let you know if you can afford a mortgage and allows you to go out and shop for a property with confidence.  It also allows home sellers and real estate agents take you much more seriously.

HSBC will collect some basic information from you and conduct a soft credit check( this means it isn’t seen by anyone on your credit report but you)

Getting a HSBC decision or mortgage in principle does not guarantee that you will get a HSBC mortgage as the information requested for a mortgage in principle is so little(and not enough to confirm your mortgage affordability but enough to give an indication) and your circumstances may have changed before you make a full HSBC mortgage application.

After receiving your HSBC mortgage or decision in Principle you can choose to receive mortgage advice from HSBC about the products it holds or, if you already know which mortgage you wish to apply for, you can complete your application entirely online, however, you will not receive advice.

If you are a non-UK resident, you won’t be able to apply for an HSBC decision or mortgage in principle online. Please contact HSBC to find out how they can assist you further on (+44) 0800 169 6333

Documents you will need for your HSBC mortgage application

Once you have filled in the information required on your HSBC mortgage application you will be required to upload some documents as part of the HSBC mortgage application process. The documents required are known as supporting documents, they will help you prove your identity, prove your income and support any claims you may have made on your HSBC mortgage application.

HSBC will send you a link via email to a secure document uploader. You will be able to see more detailed information on how to upload your documents for HSBC to review.

If you didn’t provide an email address during your HSBC mortgage application then you should call HSBC on 0800 169 6333 and request for them to register your email so you can access the secured document uploader. Alternatively, you can take your documents to your local branch, or send them via post to HSBC at HSBC Bank Plc,Mortgage Service Centre, PO Box 6308, Coventry,CV3 9LB .

Sending your HSBC mortgage application documents via post is likely to delay your HSBC mortgage application

The documents you will be required to provide with your HSBC mortgage application will differ depending on the type of mortgage applicant you are.

We have listed the document required below but depending on your personal circumstances HSBC may require you to submit additional documents.

Please note, any documents which are not in English should be transcribed by a recognised translation service and a written confirmation of this should be provided by the translation service company on their letterhead paper. If you are unsure about what translation service to use then you should contact the HSBC mortgage department by phone on 0800 169 6333.

The document required for all mortgage applicants are:

Proof of name and address

A full, valid, UK photocard driving licence, or one of the following:

proof of identity – Passport, driving licence or any National Identity Card (EEA and Swiss Nationals only)

proof of address – A non-HSBC bank statement or a utility bill dated within the last four months

Bank statements

In most cases, HSBC will not need to see your bank statements but if they need to they will let you know.

HSBC may also ask to see your latest month’s bank statements for:

non-HSBC current accounts

international HSBC accounts

Jersey and ex-pat HSBC accounts

If you make less frequent, regular payments, such as term school fees, then HSBC may ask to see your bank statements over a longer period.

Evidence of deposit

HSBC will also need to see any evidence of your mortgage deposit. If this is a gifted deposit then you will need a gifted deposit letter from the person gifting you the mortgage confirming the deposit is non-refundable and unconditional gift and that no interest is being claimed in the property.

Source of income

For your source of income, you will need to provide the below documents for your HSBC mortgage application based on your own circumstances.

If you are employed full time, the source of income that will need to be seen will be based on how you receive your income.

 For your basic income:

“Weekly-Latest 4 payslips

Fortnightly-Latest 2 payslips

Four weekly- Latest payslip

Monthly- Latest payslip

Quarterly-N/A

Half Year- N/A

Annually-N/A

For Bonus or Overtime or Commission or Shift Allowance:

Weekly-Latest 6 payslips or Latest 4 payslips and latest P60

Fortnightly-Latest 6 payslips or Latest 2 payslips and latest P60

Four weekly-Latest 3 payslips or Latest payslip and P60

Monthly- Latest 3 payslips or Latest payslip and P60

Quarterly-Equivalent 4 payslips or award letters showing payment or last P60

Half Year- Equivalent 4 payslips or award letters showing payment or last 2 P60s

Annually-Equivalent 2 payslips or award letters showing payment or last 2 P60s”

If you are self-employed then the documents you will need to provide with your HSBC mortgage application are based on your mode of self-employment, they include:

“Sole Trader / Partnership (including LLPs with less than 200 partners)- Last two years Tax Calculation* and corresponding Tax Year Overview

 (*Tax Calculation can be an online print out from HMRC website, an SA302 or a summary produced by your accountant and submitted to HMRC).

Please note: The latest HMRC documentation/accounts must be dated within the last 18 months

Limited Liability Partnership (LLPs) with 200 or more partner- A letter from the company finance director or accountant detailing your earnings over the past 2 years, dated within the last 3 months

Limited Company Director with 25 per cent or more shareholding- Your last 2 years’ signed finalised accounts, the most recent of which must be no more than 18 months old

If there are multiple directors within the business, and the financial accounts do not confirm the distribution of salary to each director, then evidence will be required from either the last two years P60’s or last two years Tax Calculations and corresponding Tax Year Overviews.

Limited Company Director with less than 25 per cent shareholding- HSBC will consider you to be employed when you make your HSBC mortgage application so you should provide the documents listed on the full-employed section with your HSBC mortgage application.”

If you are a contractor and pay your own tax then you will be treated as being self-employed when you make your HSBC mortgage application.

HSBC interest-only mortgage application documents

If you are applying for a HSBC interest-only mortgage (which is a mortgage where your monthly mortgage repayments are only made up of the interest being charged on the mortgage and the balance borrowed at the beginning of the mortgage is paid off at the end of the mortgage term with a repayment vehicle)then below are the requirements for an application.

HSBC will need to accept the repayment vehicle you choose and will regularly review it.

Below are the repayment vehicle options for your HSBC interest-only mortgage and the evidence required for each.

“Sale of mortgaged property – this should not be your primary residence.

You will need a mortgage statement or Offer Document dated within the last 12 months, if applicable.A solicitor’s letter confirming ownership of the second property and a professional valuation by an RICS Surveyor or suitable Automated Valuation Model dated within the last 12 months.

Endowment policy- You will need an endowment policy statement including endowment projection dated within the last 12 months.

UK sterling cash savings (Savings, Investments, Cash ISA, Premium Bonds, Sharesave)- You will need the latest account statement dated within the last 12 months to evidence the latest value and evidence of monthly contributions.

UK based Stocks and Shares ISA- You will need the latest Stocks and Shares ISA account statement dated within the last 12 months to evidence the latest value and evidence of regular and ongoing contributions.

Other UK based investments – Unit Trust, OEIC, Investment Bonds, Shares, Gilts

Latest account statement or certificate dated within the last 12 months to evidence the latest value and evidence of regular and ongoing contributions.

Variable income e.g. bonus- You will need the last 3 years’ P60 or compensation statement (i.e. bonus statement, bonus letter etc).”

If you are a foreign national

If you are a foreign national making a HSBC mortgage application then you will also need the below

“ If you have Indefinite Leave to Remain/Enter in the UK or a right of abode, you must prove your residency in the UK by providing either:

a current valid passport showing a visa stamp

a certificate of entitlement

a UK residency permit

or a letter from the Border and Immigration Agency/Home Office confirming residency/right to abode

If you don’t have Indefinite Leave to Remain/Enter in the UK or a right of abode, you must prove you’ve:

Lived and worked in the UK for a minimum of 12 months at the point of application by providing a current valid passport with visa stamp or work visa showing date of entry into the UK;

PLUS evidence of 12 months employment in the UK, for example, a contract of employment

AND a work permit or visa showing entitlement to live and work in the UK with at least 12 months remaining until expiry  “

Home valuation

Some mortgage lenders do desktop valuations which are carried out online whilst others will instruct a surveyor to inspect the house. This can be a drive-by survey where the survey is simply from the outside of the house or a more in-depth survey where the surveyor will go into the home (with permission) and look everywhere.

After you have submitted yourHSBC mortgage application documents, HSBC will instruct a surveyor to carry out a valuation on the property you want to buy at your cost. If HSBC finds that the home is valued less than you are buying it for then they may reduce their loan to value rate on the mortgage which will mean you need to put down a bigger mortgage deposit.

If you are not already using a government first-time buyer or home mover scheme then you may want to consider if you are eligible for any to see if they can increase your mortgage deposit or reduce the total cost of purchasing the property.

You can also carry out a more in-depth survey at a cost to you if you dispute the valuation provided by HSBC or if you just want some peace of mind.

Getting a HSBC mortgage offer

After you have submitted your HSBC mortgage application documents and HSBC has conducted a mortgage valuation on the house you want to buy, they will then let you know if they will provide you with a mortgage offer or not. If anything has changed since you first made your HSBC mortgage application then you may want to declare this change of circumstances to HSBC or they may withdraw the mortgage offer if they find out.

Completion

If you get a HSBC mortgage offer you can then begin or continue the conveyancing process. Once the conveyancing process is done you will have completed on your HSBC mortgage application.

Can I get a mortgage with HSBC?

Yes, you can get a mortgage with HSBC but before you make your HSBC mortgage application you may want to ensure you are very well prepared and are likely to get a mortgage offer.

Here are a few things you may want to do a few months before you make your HSBC mortgage application:

Get on the electoral roll:

When you get on the electoral roll this gives you more credibility to HSBC as it confirms your address and in some cases how long you have been living there.

Ensure you don’t have any recent payday loans:

Mortgage lenders don’t like lending to borrowers with a bad financial habit. Payday loans are seen as a bad financial habit and you should avoid taking any out at least a few months before starting your HSBC mortgage application.

Use a credit card to build credit:

You may want to get a credit card in order to build credit by repaying your credit card on time every month.

You may also be able to use a credit builder loan to build credit.

Check your credit report:

You should check your credit report with all four credit bureaus before you start your HSBC mortgage application to ensure there are no errors on your credit report which may then affect your ability to get a mortgage with HSBC. You can do this through checkmyfile and in case you are wondering the last credit bureau is called Crediva.

Get your documents ready

You should then begin to get your documents ready for your HSBC mortgage application.

These will usually include:

3 months worth of bank statements

3 months worth of payslips

Your P60 tax return

Your SA302 calculation form if you are self-employed

Your CV

Your contract if you are a contractor

FAQs about then HSBC mortgage application process

In this brief guide, we answered the question “How long does a HSBC mortgage application take  “

If you are worried about how long your HSBC mortgage application may take then you may want to contact HSBCand get an estimate of their current mortgage application processing times.

If you are also unsure you will be able to put your HSBC mortgage application together then you may want to go in branch or call HSBC on the telephone for them to assist you with your HSBC mortgage application.

You can reach the HSBC mortgages division on 0800 169 6333.- 8am to 7pm Monday to Friday, and 9am to 1pm Saturdays. Calling that number is free from UK mobiles and landlines.

The information on this page is accurate as at the time of writing but may have changed since then. Please ensure you crosscheck any information found on this page with the information provided to you directly by HSBC before submitting your HSBC mortgage application.

Use a mortgage broker for your mortgage in principle

You may want to use an independent mortgage broker to help you get a mortgage on your new home.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document that details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.