How much can I borrow
The new rules that govern the mortgage lending market have affected the way mortgage lenders consider applications.
Mortgage lenders will now request the following in support of an application:
- Details of your employment
- Your income
- Your monthly outgoings
Find our mortgage table above that shows best mortgage deals available.
How to calculate mortgage repayments
The size of the monthly mortgage repayment is a deciding factor when looking to take out a mortgage.
Use our mortgage calculator to find out how much you will pay each month.
Input the following information into our mortgage calculator to find the best deals for you:
- The purpose of your mortgage
- The value of the property
- The amount you wish to borrow
- The type of mortgage you want
- Your preference on capital and interest or interest only mortgage
- The length of mortgage
What is a fixed rate mortgage
With a fixed mortgage you can secure a set rate of interest for an agreed period of time. It is not uncommon for high street banks to offer fixed rate mortgages for 2,3,5 or 10 years.
Fixed rate mortgages can give you peace of mind and allow you to know exactly how much you will pay each month.
It is important to note that interest rates change over the years. Therefore, the best interest rate available to you today could end up not being as good half way through your fixed rate term.
HSBC offer a fixed rate mortgage with competitive interest rates and a variety of loan to value options.
What is a tracker rate mortgage
Tracker mortgages have variable interest rates that are closely linked to the Bank of England’s base interest rate. Therefore, whenever the Bank of England increases or decreases their base rate, tracker mortgages react accordingly.
Repayment or interest only
Repayment mortgages: these mortgages are generally more expensive than other mortgages, as you have to pay both the capital and interest of the mortgage, but they give you the opportunity to own the property outright.
Interest only mortgages: these mortgages are often cheaper than other mortgages, as you only have to pay the interest on the mortgage. Interest only mortgages do not allow you to own the property at the end of the mortgage.
There are lenders in the mortgage lending market who are prepared to accept mortgage overpayments. This may be beneficial for those looking to pay off their mortgage quickly.
However, a number of lenders will levy early repayment charges if overpayments are made. Before making any overpayments, it is advisable to contact your mortgage provider.
Independent Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on HSBC & alternative lender options.