The bank lets qualifying customers choose between fixed-rate homeowner loans with monthly payments that don't increase and flexible mortgages that allow you to pay more than the amount due.
Homeowner Fixed Rate Mortgages - These mortgages are for current and potential homeowners. The interest rate is fixed for the life of your loan. The maximum mortgage that HSBC offers is a homeowner loan for 90 percent of the property value.
HBSC also offer 85 percent loan to value (LTV) homeowner loans along with 80 and 70 LTV percent loans. HBSC has special rates for preferred or prime customers. The lower your LTV, the better the interest rate for your loan.
Homeowner Tracker Mortgages - This homeowner loan is more flexible than HSBC's fixed rate mortgages. With this loan, you agree to pay at a specified interest rate that is a amount above the Bank of England Base Rate. This rate may change daily and your payments fluctuate. Although your monthly payment could increase, it may well decrease.
You can also pay off your homeowner loan principal sooner. The Tracker loan lasts for the lifetime of the mortgage, so it does not have a surprise at the end of a specific period. This loan has two options, a standard loan, with discounted fees and a fee-free loan that has no valuation fees, completion or booking fees.
Discount Mortgages for Homeowners - The bank's homeowner discount mortgage is a variable loan that offers homeowner a set discount off the banks variable rate. Like the tracker mortgage, your payment may change as the HSBC variable rate increases or decreases.
Interest Only Homeowner Loans - HSBC's interest only homeowner loan is a mortgage that has monthly payments for interest due each month. The homeowner is responsible for paying the entire principal balance at the end of the loan term. In some cases, you benefit from the monthly savings, if wisely invested. Foreclosure and surrender is the end result if your available funds don't cover the principal amount due at the end of the mortgage.
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