Mortgage rates

We know that when it comes to choosing a mortgage, there's a lot of jargon to get your head around. That's why we've listed some common mortgage terms here.

Maximum Loan to Valuation (LTV)

The mortgage products which are available to you depend on your mortgage balance as a proportion of the value of your home (the 'LTV'). E.g. A £100,000 property with an £80,000 mortgage = an 80% LTV. This is the maximum LTV that will be accepted for this product.

You can request that your property be re-valued to ascertain your current LTV, on the basis of your belief that your property's current value is different to the estimated value on our records. Please note that by requesting a re-valuation, you would not be reserving any mortgage products or rates. Products can be withdrawn at any time and you will only be able to choose from the range available, once your current valuation is confirmed. If a re-valuation is required, a fee may be applicable. Please call us for further details.

Interest rate

This is the percentage rate at which HSBC calculates the interest that you are charged on your mortgage.

Rate period

The period during which the fixed, tracker or discount rate applies. Following the expiry of the fixed, tracker or discount rate period, the mortgage rate will move to the HSBC Variable Rate.

The duration of the fixed period noted is for indication only. Wherever an end date is stated, this will be the final day of the rate which may be longer or shorter than the indicative rate period and is not impacted by the day of booking.

Changes to the HSBC Variable Rate

The HSBC Variable Rate will vary over the term of the loan and is a variable rate set internally by HSBC. The HSBC Variable Rate does not track the Bank of England base rate.

The overall cost for comparison is APR

APR stands for the Annual Percentage Rate of charge used to compare loan offers.

An Early Repayment Charge applies to some of our mortgages. The ERC is calculated as 1% of the amount repaid early, above any annual overpayment allowance, for each remaining year of the period during which the ERC applies, reducing on a daily basis. However, (after taking your allowance into account) a maximum 5% of your overpayment will be charged.

The ERC will be 1% of the amount overpaid or repaid early, multiplied by the number of years remaining of the fixed or discount rate period, reducing daily.

For example: A customer paying off their full mortgage of £100,000, who has 18 months (547 days) remaining on their fixed rate period. The ERC would be: £100,000 x 1% divided by 365 x 547 days = £1,498.63

Early Repayment Charges do not apply to tracker rate or HSBC Variable Rate mortgages and unlimited overpayments can be made.

A non-refundable fee charged on some mortgages to secure a particular mortgage deal. You may choose to add this to the loan. However, this will increase your mortgage balance, the amount of interest you pay and your monthly payments.

The maximum amount that can be borrowed with this product per booking fee payable. Where you choose to switch two or more of your mortgage loans to the same product and where your existing mortgage loans are secured by a charge over the same property, if your total borrowing remains within the maximum borrowing limit for that new product, you will only pay the booking fee for that product once. For example, if you switch your mortgage loans to a new product which has a booking fee of £999 and has a maximum borrowing limit of £500,000, you would only pay one booking fee for switching two mortgage loans of £200,000 and £300,000 to this new product.

To qualify for some products, you may be required to hold another HSBC product. Buyer type restrictions may also apply.

Fee Saver is available on some of our products. Fee Saver for residential mortgages means no booking fee and no completion fee (the Electronic Funds Transfer Fee charged on drawdown). Fee saver for BTL mortgages means no booking fee, however a completion fee will be charged. If a re-valuation is required, we will cover the cost of one standard valuation fee. Depending on your circumstances, other fees and charges may apply. Please call us for further details.

Fixed rate – your payments are fixed for the duration of the fixed term, no matter what happens to interest rates.

Tracker rate - a tracker mortgage interest rate is set at an agreed percentage above the Bank of England base rate for the duration of the tracker term.