When exploring HSBC equity release options, it is essential to understand that the financial giant does not directly offer this type of product, it does provide alternative solutions for homeowners looking to release funds from their property. 

With a rich history behind it, HSBC serves nearly 39 million clients across 62 nations, demonstrating the financial stability, efficient management, and customer relationships needed to remain relevant today.¹

Is this option right for you?

STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to HSBC, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of HSBC. This piece does not constitute advice, or an incitement to enter any services or products provided by HSBC.

What Are the Reviews for HSBC Equity Release Like?

The reviews for HSBC equity release paint a picture of a reliable and professional financial service. Customers generally highlight the bank's efficient and straightforward process, with a particular focus on their clear and concise documentation.

The financial stability of HSBC, one of the largest banking and financial services organizations in the world, also instils confidence in clients looking for equity release products.

However, like many financial services, HSBC equity release has received mixed reviews. A few customers have raised concerns about the level of customer service and the slow process of releasing funds.

Others noted the high-interest rates and felt that the bank could do more to explain the long-term implications of equity release. It appears that while HSBC provides a generally solid service, there are areas where improvement is needed.

The BankingTimes team went the extra mile, investing substantial time and resources, to deliver an in-depth and accurate overview of HSBC and it is products.

Read on…

Who Is HSBC?

HSBC’s a multinational banking and financial services organisation headquartered in London, United Kingdom. 

Why Should You Consider HSBC?

You should consider HBSC because of its broad array of banking and financial products tailored to cater to the needs of diverse clientele. 

What Services Does HSBC Offer?

HSBC provides a comprehensive range of financial services including personal banking, business banking, wealth management, insurance, and global banking and markets.

Does HSBC Offer Equity Release?

No, HSBC does not offer equity release, but it does provide other means of accessing funds from your home, such as remortgaging.²

How Remortgaging Is an Alternative to Equity Release

Remortgaging is an alternative to equity release in that both allow you to borrow against the value of your home.

While releasing equity involves taking out a new loan against your home's value without monthly repayments, remortgaging entails switching your current mortgage to a new deal, potentially borrowing more to release equity, which then requires monthly repayments on the new loan amount.

What Are the Costs Associated With Remortgaging with HSBC?

The costs associated with remortgaging with HSBC fall into 2 categories - set-up fees and interest rates.

When it comes to set-up fees, the bank appoints a solicitor and covers all standard legal fees, including the legal processing fee, search and land registry fees and telegraphic transfer fee. 

Look at interest rates

HSBC offers interest rates for remortgaging ranging from 5.97% to 6.28%*, based on your chosen loan-to-value ratio, which is capped at 90%. 

After a period of either 2 or 5 years, subject to your selection, the rate transitions to a variable rate of 45.39%*.³

*Take note that these rates may have changed since our most recent update.

What Are the Advantages and Risks of Using HSBC?

The advantages and risks of using HSBC to remortgage your property range from global expertise and competitive rates on the one hand to potential fees and the risk of property loss on the other.

Pros

There are some key benefits homeowners might experience when opting to remortgage their property.

These include:

• Lower interest rates: Remortgaging can offer a chance to benefit from reduced interest rates, leading to lower monthly payments.
• Access to home equity: Homeowners can tap into their home's equity for uses such as renovations or consolidating debts.
• Switching mortgage types: It allows for a change between varied-rate and fixed-rate mortgages.
• Flexibility: Provides an opportunity to secure a mortgage deal more aligned with current financial situations or objectives.

Cons

While remortgaging can offer advantages, it is essential to be aware of potential downsides.

These include:

• Extended loan term: The mortgage length might be prolonged, resulting in a longer repayment period.
• Potential for higher interest: If not strategised properly or if one's credit rating declines, a higher interest rate might be incurred.
• Equity reduction: Drawing from equity means owning less of the home, impacting future financial decisions.
• Risk of property loss: Failing to meet the new repayment terms could result in the loss of the property.

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What Do HSBC Customers Think About Them?

Considering that the business has over 14 million active customers⁴ across the UK, its customers must think quite highly of HSBC.

It scores 1.4 out of 5 stars on Trustpilot, but that is based on only 8,060 reviews,⁵ which is a very small number of clients.

HSBC FCA Details

HSBC’s registered and regulated by the Financial Conduct Authority (ref no: 765112) to carry out banking, insurance, mortgages and home financial, consumer credit, pensions, investments and other financial services.⁶

What Are HSBC’s Contact Details?

• Mobile app: Access the HSBC mobile banking, navigate to 'Support', then select 'chat with us'.
• Online banking: Upon logging in, choose the Chat tab on the right.
• Apple/Google messages: Use the Messages app on compatible Apple or Android devices. 
• In-person: You can visit a branch using the provided branch locator.
• Call:
• For existing customers: From the UK - 03457 404 404 (08:00–20:00 daily). From outside the UK - +44 1226 261 010.
• For non-HSBC customers in the UK: 03455 873 444 (08:00–20:00 daily, excluding select holidays).

How Did We Review HSBC?

To review HSBC, we started with its origins and assessed its broad range of financial services. 

We delved into remortgaging as an alternative to equity release, weighing its pros, cons, and associated costs. 

Customer feedback, especially from online platforms, played a significant role, and we also verified HSBC's regulatory credentials. 

Finally, we evaluated its various customer contact and support options.

Common Questions

Conclusion

As with any financial decision, it is paramount to thoroughly research and seek professional advice to ensure the best outcome for your unique situation. 

Equity release, in particular, requires careful consideration due to its potential long-term implications. 

While HSBC does not offer direct equity release products, it provides alternative avenues for homeowners to access their property's value. 

Therefore, before pursuing HSBC equity release alternatives, always ensure you are making an informed and well-advised choice.