We recently made you aware of a number of changes to the way we assess affordability, and at HSBC, we are committed to responsible lending and ensuring the availability of credit where underlying affordability can be demonstrated.

To continue to support and protect customers, we are providing you with further guidance around self-employed income. With immediate effect, our policy is as follows:

Self-employed income

 

Sole Trader, Partnerships, LLPs with less than 200 partners, Limited

Companies

 

  • In addition to the standard documentation, the latest 90 days of business bank statements will be required (online statements/screen shots will be acceptable).
  • The latest date showing on the statements needs to be within a week of the application start date.
  • In line with the current process, input 100% net profit amounts for the current and previous accounting years in the application.
  • All applications will be reviewed by an underwriter.
  • Where a customer’s turnover has been impacted, through no fault of their own, we will still require the latest 90 days of business bank statements, and for a temporary period it may take longer for an underwriter to assess.

Customer’s uncertain of their future situation

  • Please advise the customer to notify us if their income reduces (i.e. through contracts being put on hold for self-employed, or through redundancy/reduced hours for employed).
  • We will proceed with the application if the customer wishes to do so, but please make the them aware that if they don’t notify us of any impact to their income, it could result in them proceeding with borrowing they may not be able to afford, which could have detrimental impacts such as negative credit reference data and potentially losing their home.
  • The customer must consider whether they wish to proceed with the application if they are concerned about their financial situation, or if they would prefer, they can come back to us when they have a better understanding of any impact to their finances.

HSBC UK are fully committed to supporting you and your mortgage customers during these challenging times.

We have made a number of changes to ensure you and your customers have the advice and support you need whilst providing you with the very best levels of service and the great products you’ve become accustomed to.

We’ve reduced our rates

  • We’ve reduced our 2, 3 and 5 year fixed rates (with & without a fee), up to 80% LTV
  • View our great range of products here

Open for business up to 90% LTV

  • Our range of products up to 90% LTV remains one of the most comprehensive and competitive in the industry and we’re committed to keeping it this way.
  • Due to circumstances beyond anyone’s control, the timeline for completing physical valuations for cases over 90% LTV, remains unknown. As soon as it is practically possible, we will return to helping your customers in this higher LTV bracket.

Our latest service levels

  • We’re completing pre-underwriting checks in 2 days
  • Applications sent to Underwriters are being reviewed in 3 days
  • Underwriters are reviewing Valuations in 2 days

More desktop valuations

  • We’ve increased the max LTV for AVMs/MDVs to 90% LTV for purchases, remortgages and further advances.
  • Cases greater than 90% LTV and new build properties will still require a physical valuation.

Lending responsibly

  • To continue to support and protect customers, we have changed the way we assess affordability.

Offer extensions

  • Cases exchanged
    • We’ll extend your customer’s Mortgage Offer for 3 months – just upload the solicitor’s confirmation of exchange to the case, either as a letter or a screen shot from the solicitor portal.
  • Cases not exchanged
    • If the Mortgage Offer expires in less than 2 months, please contact your BDM.
    • If the Mortgage Offer has already expired, we can only apply the extension if the expiry date is after 26th