HSBC mortgages allow you to choose from two repayment methods, according to your own personal circumstances.
The first is Capital Repayment, which is a plan that requires monthly payment to cover the interest charged on your mortgage as well as reducing the outstanding balance to suit the chosen repayment term. This repayment plan will ensure your mortgage is paid off in full at the end of the agreed term.
The first is Capital Repayment, which is a plan that requires monthly payment to cover the interest charged on your mortgage as well as reducing the outstanding balance to suit the chosen repayment term. This repayment plan will ensure your mortgage is paid off in full at the end of the agreed term.
The length of time permitted for this repayment option can be up to a maximum of 30 years.
You can choose a capital repayment plan on all HSBC mortgage products – fixed rate, tracker and discount mortgages.
The second repayment method is Interest only. With this option, the monthly payments only cover the interest charged on your mortgage, which can free up cash to spend elsewhere or to invest in order to pay off the mortgage at the end of the term.
It is important to remember that you are responsible for making your own arrangements in terms of final repayments at the end of the agreed term. This may be through an endowment scheme or any other kind of savings and investment plan. If you fail to meet these repayments you could risk having your home repossessed, so only choose this option if you are confident you can clear the mortgage when required.
Interest only mortgages offer longer repayment terms – up to a maximum of 40 years, with lower borrowing limits – up to a maximum of 75% of the purchase price or the valuation of your property (whichever is lower).
When applying for an HSBC mortgage it is important you are able to demonstrate a suitable repayment vehicle you have in place.
You can choose a capital repayment plan on all HSBC mortgage products – fixed rate, tracker and discount mortgages.
The second repayment method is Interest only. With this option, the monthly payments only cover the interest charged on your mortgage, which can free up cash to spend elsewhere or to invest in order to pay off the mortgage at the end of the term.
It is important to remember that you are responsible for making your own arrangements in terms of final repayments at the end of the agreed term. This may be through an endowment scheme or any other kind of savings and investment plan. If you fail to meet these repayments you could risk having your home repossessed, so only choose this option if you are confident you can clear the mortgage when required.
Interest only mortgages offer longer repayment terms – up to a maximum of 40 years, with lower borrowing limits – up to a maximum of 75% of the purchase price or the valuation of your property (whichever is lower).
When applying for an HSBC mortgage it is important you are able to demonstrate a suitable repayment vehicle you have in place.
