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What is HSBC's interest-only mortgage acceptance criteria?

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HSBC for Intermediaries offers interest-only on its standard fixed and tracker mortgage rates, although the lender has strict qualification criteria.

Single applicants requesting an HSBC residential interest-only mortgage will be required to have an annual minimum income of £75,000. For joint applications, at least one applicant must have an annual minimum income of £75,000.

HSBC has made the following changes to its interest-only mortgage criteria:

• Increased the maximum term for Part interest & Part capital repayment mortgage applications. The Capital Repayment element can now be taken up to a maximum of 40 years. Please note that the Interest-Only part will still be limited to a maximum of 25 years.

• Increased the maximum age for Part interest & Part capital repayment mortgage applications. The Capital Repayment element can now be taken up to the applicant’s 80th birthday.

• Any element of the application on Interest Only must not exceed the oldest applicant's 70th birthday or anticipated retirement age if sooner.

• All interest-only mortgage applications will now be assessed for affordability on a Capital Repayment basis. 

What are HSBC's current interest-only repayment plans?

Acceptable repayment plans

  • Ad hoc Capital (lending is capped at 50% loan-to-value. Additional repayment vehicles can be used for lending above this loan-to-value.)
  • Savings
  • Endowments
  • Stocks and Shares ISA
  • Investments
  • Sale of Other Property

Aaron Strutt, product director at Trinity Financial, says: "Lots of banks and building societies offer interest-only mortgages now, but their rates are not always as cheap as HSBC's fixes and trackers.

"HSBC has a selection of competitively priced rates, and the bank is clearly keen for business following its recent mortgage affordability changes and interest-only mortgage criteria tweaks."

Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

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