HSBC Equity Release And Lifetime Mortgage Review in 2024

Do You Want to Access Property Wealth With an Equity Release Alternative From HSBC? Understand the Pros, Cons, Fees, Interest Rates and Safety of HSBC. Read On…
  • Last Updated: 05 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • HSBC does not directly offer equity release products like lifetime mortgages or home reversion plans.
  • The bank focuses on traditional mortgages and personal banking services.
  • It's recommended to consider other financial institutions for equity release.
  • HSBC's role in the equity release market may involve partnerships or referrals.
  • Understanding HSBC's position helps in exploring comprehensive retirement planning options.
  • Currently, equity release rates are between 5.20% to 6.30%*

Are you considering HSBC as a provider of an equity release alternative?

We have compiled comprehensive information about HSBC's equity release alternatives to provide you with the answers you need.

Given the increasing number of retirees turning to equity release and it's alternatives for a better retirement, it is understandable that you may consider it.

You need to ensure you choose the right product and provider.

In This Article, You Will Discover:

    Here at Every Investor, our economic journalists scour the market for the latest information on what is equity release, providers, and alternatives to bring you what you need to know about HSBC and equity release.

    Therefore:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of HSBC. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by HSBC.

    Simplified View of Equity Release

    For seniors over 55, equity release offers a way to access the value in their homes. It enables them to turn a portion of their home's equity into cash, foregoing the need to sell.

    This financial approach is unique in its repayment plan; the borrowed funds, with interest, are repaid following the property’s eventual sale, typically linked to significant homeowner life changes.

    Who Is HSBC?

    HSBC is one of the largest banks in the UK and globally, and is also the bank that has the biggest market share of the mortgage sector in the UK.

    It has been in business since 18651 when it was first established in Hong Kong as a bank to finance trade between Europe and Asia.

    HSBC has a market presence in over sixty-four countries with over 40mln customers2.

    Why You Could Consider HSBC

    You could consider HSBC because it has a long-standing history as a top banking institution, not only in the UK but globally.3

    It has a vast range of banking products on offer, and you should be able to find the right solution for your needs from HSBC.

    What is more, it is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA), so you know that you are in safe hands when choosing it as a provider.

    Does HSBC Have an Alternative to an Equity Release Calculator?

    No, as it does not offer equity release.

    However, if you are looking to release funds, use this fast calculator below to see approximately how much you could release.

    What Services Does HSBC Offer?

    HSBC offers a variety of services across the banking sphere.

    More detail:

    Banking Services

    • Current Accounts
    • Savings Accounts
    • International Banking Services

    Borrowing Services

    • Credit Cards
    • Loans
    • Mortgages

    Investing

    • Investment Products
    • Investment Planning
    • Retirement Planning

    Insurance Services

    • Short Term Insurance
    • Life Cover

    Financial Wellbeing

    • Financial Planning

    Does HSBC Offer Equity Release or Lifetime Mortgages?

    No, HSBC does not currently offer equity release products.

    However, HSBC does offer other mortgage options.

    The mortgage plans HSBC offers may be an alternative to equity release.

    You may consider re-mortgaging with HSBC as an alternative way to release equity from your home.

    Does HSBC Offer Any Alternatives to Equity Release?

    Yes, HSBC does offer alternative options.

    What is on offer:

    First-time Buyer Mortgage

    • Allows you to make overpayments
    • You can choose a term of up to thirty-five years
    • You can apply by telephone as well as digitally
    • Fee saver options

    Re-mortgage Plans

    • You could save with a lower rate from HSBC
    • No legal fees
    • Standard valuation is included for free
    • You can apply by telephone or digitally

    Mortgage to Move Home

    • You could save with a lower rate from HSBC
    • No legal fees
    • Standard valuation is included for free

    Buy-to-Let Mortgages

    • Up to a 75% LTV for buy-to-let clients
    • Low interest rates
    • Standard valuation included for free
    • You can apply by telephone as well as digitally

    What Are the Interest Rates on HSBC's Equity Release Alternatives?

    Some of the interest rates offered on HSBC's alternatives to equity release:

    • First-time buyer mortgages - The interest rate will vary from 5.20% to 6.30%*, depending on the LTV you require. The initial interest rate will increase after two years to a tracking rate of 5.44%*.
    • R-emortgage plans - Interest rates available to those who re-mortgage with HSBC are between 5.20% to 6.30%* and depend on the LTV you choose. Re-mortgage LTVs are only available at an LTV of 90%*. After two years or five years, depending on the option you take, you will then move to a variable rate*.
    • Moving home mortgage - Available interest rates on a home mover’s mortgage range from 5.20% to 6.30%* and are set depending on the LTV you take, which is available on this option up to 95%*. After two, three or five years, you will move to a variable rate of 5.44%*.
    • Buy-to-let mortgage - This plan offers interest rates of 5.20% to 6.30%*, which is related to the LTV you require. Buy-to-let mortgages only offer a maximum LTV of 7.60%*.

    If you would like to know what the equity release interest rates are, look no further. They range from 5.20% to 6.30%*

    *While we regularly review our rates, these may have changed since our last update.

    What Are HSBC’s Fees?

    HSBC's fees vary depending on the mortgage plan or bank account you select.

    Some of the fees:

    Mortgage Plans

    • First-time buyer mortgages - from £0 to £1,499 booking fee
    • Re-mortgage plans - from £0 to £1,499 booking fee
    • Mortgage to move home - £0 to £1,499 booking fee
    • Buy-to-let mortgage - from £0 to £1,999 booking fee

    Credit Cards

    • Premier card - 2.7% on balances transferred and no annual fee
    • Purchase card - 2.9% on balances transferred and no annual fee
    • Rewards card - 2% on balances transferred and no annual fee
    • Balance transfer card - 1.4% on balances transferred and no annual fee

    Saving and Investing

    • Stocks and shares - from 0.25% annual fee
    • Regular savings account - No fees
    • Easy access savings account - No fees
    • Fixed-rate savings account - No fees
    • Children’s savings account - No fees
    • ISA’s (Individual savings account) - No fees

    *The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health, and lifestyle factors in order to provide an enhanced amount.

    Bank Accounts

    • Student Accounts
    • Current Accounts
    • Advance Accounts
    • Premier Accounts
    • Children's Accounts
    • Business Accounts

    What Are the Advantages and Disadvantages of Using HSBC?

    The advantages of using HSBC include that it is a global bank with years of experience, and the disadvantages of HSBC include that it does not offer equity release plans.

    HSBC Pros

    Pros are:

    • It is a global bank with over 150 years of experience
    • HSBC is authorised and regulated in the UK by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA)
    • It is the most significant player4 in the UK mortgage sector
    • Interest rates are relatively low

    HSBC Cons

    Cons are:

    • HSBC does not offer equity release plans
    • It does not cater to the retiree mortgage market specifically
    • Traditional banking practices still apply and may make it less versatile than an online bank
    • Equity Release will impact the amount of inheritance you can leave.

    How Did We Review the Information on HSBC and Equity Release?

    We compiled this guide by thoroughly reviewing all available data on HSBC's products to provide you with the most credible information.

    NOTE: This article is an unaffiliated, independent, third-party, review of HSBC.

    HSBC Customer Reviews

    Take a look at some customer online reviews about HSBC.

    HSBC Complaints

    If you need to make a complaint to HSBC, you can make use of the following methods:

    • Call HSBC
    • Personal Banking customers: 0345 740 4404
    • Premier Banking customers: 0345 770 7070
    • Business Banking customers: 0345 760 6060
    • Visit an HSBC branch - Find your closest branch here
    • Write to HSBC - Customer Service Centre, BX8 1HB

    HSBC FCA Details

    Trading Names

    • HSBC Private Banking
    • FD
    • FD Bank
    • First Direct Bank
    • HSBC UK Bank Plc
    • First Direct
    • HSBC
    • HSBC UK
    • HSBC UK Bank

    FCA Permitted Services

    • Banking
    • Insurance
    • Mortgage and Home Finance
    • Consumer Credit
    • Pensions
    • Investments

    Regulators

    • Financial Conduct Authority5
    • Irish Financial Regulator6
    • Prudential Regulation Authority 7

    Registration Numbers

    • FCA Firm reference number: 765112
    • Companies House number: 09928412

    FCA and Companies House Link

    HSBC Contact Number and Address

    • +44 345 740 4404
    • 1, Centenary Square, Birmingham, B1 1HQ, UK.

    Common Questions

    Is HSBC a Member of the Equity Release Council?

    Who Owns HSBC?

    Can I Apply for a Job at HSBC?

    Does HSBC Offer Equity Release?

    Is HSBC Safe?

    In Conclusion

    If you are considering HSBC as a banking or lending provider, we hope you have found this guide helpful.

    HSBC is not only one of the largest banks in the UK but also boasts a significant global presence.

    Before deciding if HSBC is the right equity release alternative provider for you, we recommend you speak to your trusted financial adviser.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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