HSBC secured loans what's actually on offer

If you're searching for HSBC secured loans, here's what you need to know upfront: HSBC doesn't offer standalone secured loans or second charge mortgages to the general market. Instead, existing HSBC mortgage customers can borrow more against their property through a further advance on their mortgage.

This might not be what you expected, but we'll explain exactly what HSBC does offer, who it suits, and the alternatives available if you need to raise funds against your home without disturbing your existing mortgage.

Best for: HSBC mortgage customers with good credit who want to borrow more and don't mind the additional borrowing being added to their existing mortgage.

Worth looking elsewhere if: you want a separate secured loan, your mortgage is with a different lender, or you have an adverse credit history.

HSBC Holdings plc is the parent company of the HSBC Group, a British banking and financial services group headquartered in London. It's one of the largest banks in the world by total assets, with a presence spanning dozens of countries.

The bank traces its roots back to 1865, when Sir Thomas Sutherland founded the Hongkong and Shanghai Bank in British Hong Kong to serve merchants trading across Asia. HSBC Holdings plc was established in London in 1991 as the group's parent company.

In the UK, HSBC UK Bank plc is one of Britain's big four clearing banks, a position it strengthened with the 1992 acquisition of Midland Bank. The UK retail arm serves millions of personal and business customers through a nationwide branch network.

HSBC UK is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. It's notable among the major UK banks for holding more deposits than loans, which contributes to its reputation as a stable, lower-risk institution.

HSBC offers a broad range of mortgages, including fixed rate, tracker, and variable products, for first-time buyers, home movers, remortgagers, and buy-to-let investors. It also offers personal loans of up to £30,000 to existing customers, or up to £50,000 for Premier customers.

Let's be clear about what HSBC actually offers when it comes to borrowing against your home, because it's not what most people expect when they start searching for HSBC secured loans. Understanding the distinction will help you decide whether HSBC is the right option or whether you need a specialist lender instead.

What HSBC does offer

If you already have an HSBC mortgage, you can apply for a further advance, remortgage your existing deal to release equity, or take out an unsecured personal loan. We cover each of these in more detail below.

What HSBC doesn't offer

• Second charge mortgages or homeowner loans: HSBC doesn't offer standalone secured loans that sit alongside your existing mortgage. This type of product is provided by specialist lenders rather than high street banks.
• Secured loans to non-customers: you can't get a secured loan from HSBC unless you already have an HSBC mortgage. Even then, it's technically a further advance rather than a separate loan.
• Bridging loans: HSBC doesn't provide short-term bridging finance.
• Guarantor loans: HSBC doesn't offer loans where someone else guarantees your repayments.

If you're an existing HSBC mortgage customer, here's the context you need before starting a further advance application.

Eligibility

You can apply to borrow more if you've held your HSBC mortgage, or any additional borrowing, for at least 6 months, or if you've paid off your mortgage and remain the property owner. You'll also need consent from everyone named on the mortgage. The amount you can borrow must fall within HSBC's maximum loan-to-value for your property's current value, so if your property has increased in value since you took out your mortgage, you may have access to more equity than you think.

How to apply

If you meet the online eligibility criteria, you can log in to HSBC online banking and apply there. If you don't meet these criteria, you can call HSBC's mortgage team to discuss your options directly.

Timeline

The entire process typically takes 4-8 weeks, though this varies depending on how quickly you provide documents and whether a physical valuation is needed. Complex cases may take longer.

When you borrow more with HSBC, the rate you're offered depends on your loan-to-value, the product you choose, and whether you're an HSBC Premier customer. Rates change frequently, so speak to an advisor for current figures rather than relying on published examples.

Rate structures

• Fixed rate: your rate stays the same for a set period, typically 2, 3, or 5 years, then reverts to HSBC's Standard Variable Rate.
• Tracker rate: your rate tracks the Bank of England base rate by a set margin, usually over a 2-year period.
• Fee Saver products: no booking fee and no completion fee, but potentially a slightly higher interest rate.
• Standard products: a booking fee applies, but you'll usually get a lower interest rate during the initial period.

Early repayment charges

HSBC charges an early repayment charge if you repay your mortgage early during the fixed-rate period. This is typically calculated as a percentage of the amount repaid early for each remaining year of the fixed period, reducing daily. You'll usually have an annual overpayment allowance, often around 10% of the outstanding balance, that you can repay without triggering a charge.

Borrowing more with HSBC isn't the right choice for everyone. Here are the main drawbacks to weigh up.

• Only available to existing HSBC customers: if your mortgage is with another lender, you can't access HSBC's further advance. You'd need to remortgage to HSBC first, which may trigger early repayment charges on your current deal.
• May affect your existing mortgage rate: borrowing more could mean changing your current mortgage terms. If you're on a competitive fixed rate you want to keep, a further advance might not be the best route.
• Stricter credit requirements: HSBC is a mainstream lender with conservative underwriting criteria. If you've had credit difficulties, missed payments, or complex income, you may struggle to get approved.
• Longer processing time: a further advance with HSBC typically takes 4-8 weeks, whereas specialist secured loan lenders often complete in 2-4 weeks.
• Limited flexibility: unlike some specialist lenders, HSBC doesn't offer dedicated secured loan products with features like no early repayment charges or very high loan-to-value options.
• Stricter requirements for the self-employed: HSBC requires at least 2 years' accounts from self-employed applicants, which can be a barrier if you've recently started trading.

Based on our experience helping homeowners weigh up their options, HSBC's further advance works best for specific situations.

Worth considering if

• You already bank with HSBC and have good credit: if you have a clean credit history and need to borrow more, the further advance is a sensible first option to explore.
• You don't mind refinancing: if you're happy to add the borrowing to your main mortgage rather than keeping it separate, HSBC can work well.
• Your income is stable and easy to verify: HSBC's affordability assessments favour employed borrowers with regular payslips.
• Your fixed rate is ending anyway: if your HSBC mortgage deal is about to end, combining a rate switch with additional borrowing can make sense.

Worth looking elsewhere if

• Your mortgage isn't with HSBC: specialist lenders can provide second charge mortgages regardless of who your first mortgage is with.
• You want to protect your existing rate: if you're on a good mortgage rate and want to borrow without affecting it, you need a second charge mortgage from a specialist lender, not a further advance.
• You have adverse credit: HSBC has conservative underwriting criteria. If you've had missed payments, defaults, or other credit issues, specialist lenders are more likely to help.
• You're self-employed with less than 2 years' trading: specialist lenders may accept 1 year's trading history or use different income verification methods.
• You need funds quickly: specialist secured loans typically complete in 2-4 weeks, compared to 4-8 weeks with HSBC.

Since HSBC doesn't offer standalone secured loans, here are the alternatives to consider if their products don't suit your situation.

Specialist secured loan providers

These lenders offer second charge mortgages that sit alongside your existing mortgage without affecting it. Here's how HSBC compares with specialist second charge lenders on the factors that matter most.

Other HSBC options

If a further advance isn't available or isn't right for you, HSBC also offers unsecured personal loans of up to £30,000 (£50,000 for Premier customers), which don't put your home at risk. Alternatively, if your mortgage is with another lender, you could remortgage to HSBC and borrow more at the same time, though it's worth checking any early repayment charges on your current deal first.

The amount you could borrow depends on your property value, your existing mortgage balance, and what you can realistically afford to repay.

Calculating your available equity

Your equity is the difference between your property's current value and what you owe on it. Here's a worked example.

Lenders don't let you borrow all of your equity. Most limit total borrowing to 75-85% loan-to-value, with some specialist lenders stretching to 95%. Here's how that plays out using the example above.

Affordability considerations

Even with substantial equity, lenders assess whether you can afford the monthly payments by looking at your income, existing debt payments, household bills, and other financial commitments. This is often expressed as a debt-to-income ratio. The exact ratio lenders will accept varies, so it's worth discussing your income and existing commitments with an advisor to understand what you could realistically borrow.

Common reasons homeowners raise funds against their property include:

Home improvements

Extensions, renovations, new kitchens, bathrooms, or loft conversions. These can add value to your property while improving your living space.

Debt consolidation

Combining multiple debts into one monthly payment, potentially at a more manageable rate. Be aware that spreading payments over a longer term could mean paying more interest overall, even if the rate is lower than your current debts.

Major purchases

Cars, weddings, or other large expenses where the amount you need exceeds typical unsecured loan limits.

Business investment

Some homeowners release equity to invest in a business opportunity, though this carries significant risk and is worth discussing carefully with an advisor first.

Worth noting: HSBC doesn't allow personal loans for property purchases, deposits, or buying a stake in a property. If you need funds for property investment, you'll need a different solution.

Whether you apply to HSBC or a specialist lender, here's what to expect.

For an HSBC further advance

1. Log in to online banking (if eligible) or call HSBC's mortgage team
2. Complete an application with details of how much you want to borrow
3. Go through an affordability assessment based on your income and outgoings
4. Have a credit check run on your file
5. Have your property valued, if required
6. Receive an offer detailing the terms and conditions
7. Accept the offer and complete, with funds released

Typical timeline: around 4-8 weeks.

For a specialist secured loan, through a broker

1. Have an initial conversation to understand your needs and circumstances
2. Go through a soft credit search to check your options without affecting your credit score
3. Receive a lender recommendation based on your profile
4. Submit a full application with supporting documents
5. Have your property valued, often automated for speed
6. Receive an underwriting decision
7. Go through the offer and legal work stages
8. Complete, with funds released

Typical timeline: around 2-4 weeks.

Documents you'll need

• Proof of identity (passport or driving licence)
• Proof of address (utility bill or bank statement)
• Last 3 months' bank statements
• Last 3 months' payslips (if employed)
• Latest P60 or tax year overview
• SA302 or accountant's certificate (if self-employed)
• Mortgage statement
• Details of any other credit commitments

Secured borrowing comes with various fees. Here's what to budget for.

Example: for a £50,000 secured loan, typical total fees might be in the region of £1,500 to £3,500, depending on the lender and product chosen.

Always factor these costs into your decision. A slightly higher interest rate with lower fees might cost less overall than a lower rate with high setup costs, especially if you plan to repay early. Speak to an advisor to compare the total cost of different options.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. This is the most serious consideration with any secured borrowing. Before committing, honestly assess whether you could afford the payments even if your circumstances changed, such as job loss, illness, or a relationship breakdown.

Long-term cost

Spreading borrowing over a longer term keeps monthly payments lower, but you'll typically pay significantly more in total interest over the life of the loan. Repaying over a shorter term increases your monthly costs but reduces the total interest you pay. Ask your advisor to compare the total cost of different terms before you decide.

Impact on your mortgage

Taking a further advance with HSBC affects your existing mortgage. If you're on a good rate, this could mean losing it. A second charge mortgage protects your existing deal but adds a separate monthly payment.

Early repayment considerations

If your circumstances might change and you'd want to repay early, perhaps through selling, remortgaging, or coming into money, check the early repayment charges carefully. Some specialist lenders offer products with no early repayment charges.

Effect on future borrowing

Additional secured debt affects your debt-to-income ratio, which could impact future mortgage applications if you want to move home.

If you're worried about managing existing debts or repayments, you can get free, independent guidance from MoneyHelper on 0800 138 7777.

Working out whether a further advance, remortgage, or specialist secured loan is right for you can be complex. Here's how we can help.

• We compare a wide range of lenders: we compare HSBC's products, if you're eligible, against specialist lenders who might better suit your needs, all through one application process.
• Expert guidance: we'll connect you with a specialist who can help you understand whether a further advance, remortgage, or second charge mortgage is right for you, and which lenders are most likely to accept your application.
• A soft credit check first: we check your eligibility without affecting your credit score, so you know your realistic options before you commit to a full application.

Three ways to proceed

• Check your eligibility online: see what you could borrow and which lenders might consider your application. It takes a couple of minutes and won't affect your credit score.
• Speak to a specialist: talk through your situation with an advisor who can explain your options.
• Request a callback: leave your details and we'll arrange a time to call you back.