HSBC is one of the world’s largest banking and financial service organisations. Founded in 1865 to finance trade between Asia and the West, HSBC has grown to become a global banking powerhouse with more than 38 million customers. According to the bank, its purpose is to “enable businesses to thrive and economies to prosper, helping people fulfil their hopes and dreams and realise their ambitions.”
HSBC bridging loans are mainly used for property transactions. They are designed to cover a temporary shortage of credit, hence the term ‘ bridging’. Generally, they’re taken out for only two to three months. In situations where somebody buying a property needs to make a down payment on a brand-new mortgage before they have sold their existing property, a bridging loan could be a suitable idea.
What Are the Interest Rates Like?
Due to the specialist nature of bridging finance the interest is greater in comparison to loans from traditional high street banks, such as Lloyds, NatWest and Halifax. You can sometimes have interest payments ‘rolled up’. This means you will not pay on a monthly basis but rather a lump sum at the end of the agreed term instead. This is helpful for those people without the required funding at the early stages of receiving the loan.
How to Apply for Bridging Finance
Almost any limited company, trust, or individual can obtain bridging finance online. Usually, the online application for a bridging loan tends to be quick and simple to fill out. An HSBC bridging loan can be used for almost any reason, so as long as the borrower is over the age of 18 and the reason for applying is approved by the provider. Bridging loans always require some form of an asset, such as land, or property as security. A bridging loan is a secured a loan, which means the loan provider takes second or first charge over the asset, property or land being financed.
If the debtor is a company, the loan provider might need further guarantees. Without the ownership of these assets, a bridging loan cannot proceed. The biggest concern for online bridging loan lenders is when and how they will get repaid. Any online loan provider will want to be certain that if they lend funds, it’ll be settled as guaranteed by the debtor.
The security will also be used to work out the loan to value of a bridging loan, which works in a comparable way to a mortgage from one of the big high street banks, such as Santander, NatWest or the Halifax. The LTV shows the size of the loan in comparison with the value of the property.
HSBC Bridging Loan Calculator
Our calculator is simple to use and has been made to show interest charges and other costs associated with a bridging loan. There are lots of bridging finance companies that charge many different rates of interest along with many other costs. These charges differ making it difficult to offer a bridging loan quoting system online that’s capable of offering quotes for every conceivable circumstance. A bridging loan calculator is only designed as a guide.
On top of the rate of interest you’ll be paying a set of different fees when you take out a bridging loan, including some of the following:
Commercial loans are only used for the short term, although they might be renewable on maturity. Commercial loans are used to finance capital needs; that is, needs for operations and other needs of the business. Commercial loans can be borrowed from a bank or a credit union.
The assets of the business tend to be used to secure the loan. In order to qualify for a commercial loan, the business must be seen as a good credit risk. To establish how good a credit risk a business is, a commercial loan officer will look at numerous financial and tax statements alongside your current business plan.
HSBC Loan Calculator
Online loan calculators compare the cost of different loans that can be paid back from between one to twenty-five years. The APR you’ll be charged will depend on your circumstances and is normally between 3.2% and 99.9%. You can compare the cost of various deals by altering the loan term or the amount you would like to apply to borrow. You may also enter the budget you have every month and let the calculator tell you how much you’re able to borrow and over what period of time. An online loan calculator can be used to compare all kinds of loans from business and home loans to unsecured and secured loans.
The Government-backed Help to Buy equity loan scheme is a great option for first-time buyers who may struggle to raise the necessary funds to get on the property ladder. Successful applicants are offered a loan worth 20% of the value of the property, on the condition that they are able to put up a deposit of 5%. This means that the resulting mortgage required needs to cover just 75% of the property’s value and is therefore much easier to obtain.
For the time being however, HSBC does not participate in the Help to Buy scheme.
Most people will have to obtain a loan at some time, whether it is to do something expensive like extend your home, to buy something pricey or to pay off various debts. If you’ve got a mortgage or own your own property, getting a loan can often be easier and cheaper, and you may get access to more money than a person that is not a homeowner. This is because owning a property can give you access to funds to pay the loan back if you lose your job or some other source of income.
Secure homeowner loans are financial products borrowed against the equity in your property. You will be required to make regular monthly repayments throughout the term of the loan, which can be between 5 and 35 years.
Key points when comparing secured loan products:
As an alternative to career development loans, HSBC offers its current account holders accessible and flexible graduate loans. Available for amounts between £5,000 and £25,000, the loans carry a representative APR of 3.3% and must be applied for within five years of graduation.
The primary appeal of these graduate loans is the speed and ease with which they can be accessed. HSBC provides immediate decisions on eligibility, followed by instant transfer of the required funds if the application is successful. Payment breaks can be taken and early repayment is possible, making graduate loans a great option for those looking to get their careers off to the best possible start.
Business mortgages, also called commercial mortgages for owner-occupiers, are designed for businesses individuals re-mortgaging or buying a property to be used as premises for a business. Business mortgages are also available on a mixed-use property.
Commercial mortgages can be used for three purposes:
A mortgage is a massive financial commitment, so you need to know how much it’s going to cost. The most convenient way to finding this out is to use an online mortgage calculator which allows you to figure out exactly what your payments are going to be, regardless of if you are applying for a buy to let mortgage, re-mortgaging, moving house or acting as a first-time buyer.
If you are you concerned about the affordability of your repayments, a mortgage calculator can help you find out the exact figures. Most mortgage calculators are extremely straightforward to use and within a matter of seconds you’ll know how much the payments are going to be based on the mortgage term, the rate of interest and how much you will have to borrow.
This useful tool, also known as a remortgage calculator or APR calculator, works for various mortgage types – from first-time buyer mortgages to buy-to-let mortgages. Be sure you are aware that these results only offer a quick indication of how much repayments might be.
When you get a buy to let mortgage through HSBC you will enjoy a number of benefits that other lenders may not be able to offer you. These include great rates that will lower your monthly payment, low fees for booking, and tracker and fixed rates that are available. By customising your buy to let mortgage to really meet your needs, you can be sure that you won’t have to worry about the future of your mortgage.
The Buy to Let Mortgage Process
At HSBC the lender professionals will talk to you about your needs, the property, and what kind of income you expect from your property. They offer LTVs of up to 75%, but do have a maximum lending limit on how much you are allowed to borrow. Additionally, be prepared to pay charges from the lender, as well as some legal fees.
Applying for a Buy to Let Mortgage
It’s easy to apply for your new mortgage from HSBC. Your first step is to get a Decision in Principle, which can occur online, in the branch, or over the phone. Your second step is to make a mortgage application.
While many of the financial products and services provided by HSBC can be applied for online, others require in-person meetings or telephone consultations. In any case, we can help you pinpoint and apply for the perfect product for your needs. Give a member of our customer support team a call today, or send us an email with an outline of your loan requirements.