HSBC Bridging Loans
Who are HSBC and what do they do?
Founded in Hong Kong in 1865, HSBC has been a trusted provider of financial services for over 150 years.
They’ve served more than 40 million customers around the world across 64 countries and territories. Personal customers can access all kinds of financial services, from current accounts to personal loans, mortgages and insurance. And businesses are in good hands, too, with HSBC winning the Euromoney title of the world’s best bank for small and medium-sized enterprises in 2019.
Does HSBC offering bridging loans?
Yes, they do offer customers bridging finance. So whether you’re hoping to bridge the gap between buying and selling property (i.e. you want to purchase a new house before the sale of your current property has competed), or you need to access short-term funds to help support healthy cash flow, or you already have an existing mortgage with HSBC, a bridging loan could be the right option for you.
What do HSBC’s interest rates look like on bridging finance?
The best way to get a clear idea of HSBC interest rates is to get a quote directly from them. Interest rates vary between providers, but as a loose guide, you can expect to pay anywhere between 0.4% and 2%.
Remember that a bridging loan is short-term in nature, which means lenders can’t make their money as they would do with a traditional loan — through an annual percentage rate (APR). Instead, interest is paid monthly. The longer you take to repay the loan, the more interest you pay.
Even a small difference in interest between providers should be considered.
What do I need to get a bridging loan with HSBC?
All lenders will want to see evidence of a clear exit strategy — they need to know how you plan to repay the loan in full. Lenders aren’t as focused on credit score as you’re securing the loan with collateral, usually property or land.
If you’re already a customer of HSBC, this process is much easier as your details are already in their system, and they already know you.
Most lenders will want:
— proof of income
— registered address in the UK or proof you live in the UK
— to confirm you’re over the age of 18
If you meet their criteria, they’ll send a member of their surveying team out to create a valuation report of the property you’re using to secure the loan with.
How do I apply and how easy is the process?
To apply directly with HSBC for a bridging loan, you can apply online, via phone or in branch. You can also apply through a mortgage broker or by using an alternative finance provider (such as one of these).
If you’re already banking with HSBC, or you have a mortgage arranged with them, the process is much quicker and easier. In fact, if you do not plan to have a mortgage with HSBC, they may not consider your application.
If you don’t want a mortgage with HSBC, or you’re just interested in researching your finance options, you can compare bridging finance lenders easily using our directory.
How long does the application process take and when do I get the money?
The process length depends on your individual circumstances and the lender you choose. If it’s a straightforward bridging loan application and your lender needs to carry out only a handful of checks, you could expect a conditional offer within as little as a few hours to a few days.
If your process is a little more complex, you could be waiting up to a few weeks for confirmation. It’s common for the process to take between 7-14 days.
You can increase the speed of the process by asking your shortlist of lenders a few questions to help you find the quickest route possible.
Ask them whether they require a full valuation report or whether they need full searches. It’s also good to ask what they expect to see in your exit strategy. Make sure you’re as informed as possible before you apply.
Does HSBC offer any specialist bridging options for things like property, business etc.?
As with most banks offering mortgages, HSBC allows customers to borrow against their mortgage to help with home renovations and refurbishments.
You can also apply specifically for a home improvement loan where you won’t be penalised for making overpayments.
If you’re a property business looking to access funds, you can complete the HSBC business lending eligibility checker in minutes and before a full credit check to see which business lending options you qualify for.
The advantages of a bridging loan with HSBC
The main advantage of securing a HSBC bridging loan is the fact they can arrange your mortgage for you after the loan, which means you can keep your finances neatly packaged together. If you’re familiar with the bank already, you might find comfort in using the same provider you trust.
The disadvantages of a bridging loan with HSBC
Going directly to HSBC can mean you miss out on comparing all the other options available to you. There are hundreds of alternative providers specialising in bridging finance.
Using an alternative lender can be quicker, more flexible, and you can access specialist knowledge from the provider.
Because the online lending industry is competitive, there are so many lenders vying for your attention, which means, as the borrower, the power is in your hands.
What is the Bridging Loan Directory?
As the name might suggest, we’re a directory, giving you all the information you need about bridging loans right at your fingertips.
We guide you through the minefield that is bridging finance; we try and provide you with all the answers you need in order to make an informed decision.