HSBC Remortgage Online Process - Change Rate/Term credit check?

viraltisticTs

Hi all
I have a few questions for those who have remortgaged recently online via HSBC and would appreciate some advice. 

1) My HSBC mortgage is coming up to the end of its fix, and I am looking to do at the least a rate change but sticking to HSBC. I understand that rate changes is a product switch and should not result in underwriting and should automatically be accepted (is my understanding correct)?

2) Does anyone know if a term change (increasing the term of the mortgage back to say 25 years) will result in extra and additional credit checks? Or is this also automatically accepted because I am an existing HSBC Mortgage holder? 

3) Say I have overpaid on my mortgage and the term has decreased by 1 year. If I am only able to do a rate change and no term change, I assume the rate just switches and I am still 1 year sooner to repaying the entire mortgage. 

Thanks all!

K_S

1. Correct, assuming no additional borrowing or change in term.

2. Generally speaking, an extension of term will require an assessment. Not the same as a like for like product switch.

3. It could be a reduction in term or reduced monthly payments over the same term. It can differ from lender to lender, I can't recall what it is for HSBC. In any case it should show you what your monthly repayments are prior to confirming the switch.

viraltisticTs

Thank you
Does anyone know what an assessment under 2. would consist of? Requiring new payslips?
Has anyone recently done a rate switch and or term change with HSBC that could enlighten me on the process online and timings?

K_S

@viraltisticTs A like for like rate switch with HSBC is very straightforward, I just did one for a client last week, and borrowers can do it directly as well. However, when it involves a term extension its different.

HSBC doesn't permit brokers to do a product switch with an extension of term so I'm not sure of how specifically HSBC does it. But (for other lenders in general) it often involves confirming that the mortgage is affordable over the whole term.

I would recommend calling HSBC and asking them the question.

viraltisticTs

Thanks K_S!