Contributors:
- HSBC provides a variety of senior financial services, including retirement accounts and specialised mortgages designed for retirees, but it does not offer equity release products.
- The bank aids retirement planning with an array of financial products that include pensions and retirement funds, complemented by advice to help clients.
- While HSBC's retirement products offer investment flexibility and many options, potential drawbacks include fees and the complexity of some investment choices, which may require more active management.
HSBC Equity Release has become a focal point for many, especially given that over-55s in the UK hold over £2.6 trillion of property wealth.¹
If you hold a portion of that wealth, you may be looking into releasing some of that money to fund your retirement.
Is HSBC an option?
In This Article, You Will Discover:
Our experts have thoroughly researched HSBC's offerings, focusing on their financial services and its alternatives to traditional equity release.
In this review we have sourced all the relevant information, so you do not have to.
Find out if HSBC can provide the right solution for you.
NB: Fundweb is an unrelated and independent 3rd-party provider, and the information provided in this article are the opinions of Fundweb only and may not reflect the views of HSBC. This article is not to be construed as advice, nor is it a solicitation to enter any financial product provided by HSBC.
Request a FREE call back discover:
- Who offers the LOWEST rates available on the market.
- Who offers the HIGHEST release amount.
- If you qualify for equity release.
What Is Equity Release For Seniors?
Equity release is a financial tool for seniors, allowing them to access the wealth tied up in their property and use it to enhance their retirement lifestyle.
What Is HSBC?
HSBC is a well-established, global investment bank and financial service provider with a proven track-record.
It opened its doors in Hong Kong in 1865 with its main purpose being a local bank that could also serve the international needs of its customers to enable trade between Europe and Asia.1
Today it has almost 39 million customers across 62 countries spread over Europe, Asia, North and South America, and Africa.2
Its services include: personal, commercial and international banking, as well as wealth and investment management.
Should You Consider HSBC?
Yes, it is worth considering HSBC because it has a long-standing history and is regulated by the Financial Conduct Authority (FCA),3 ensuring the safety of its banking products.
What Types of Financial Services Does HSBC Offer?
The FCA permits HSBC to offer the following types of financial services:
- Mortgage and Home Finance
- Consumer Credit
- Banking
- Pensions
- Investments
- Insurance
HSBC underscores the significance of independent financial advice and provides financial planning through HSBC Financial Advisors.
HSBC Financial Advisors focus on:
- Life and Critical Illness insurance.
- Pension and Tax planning strategies
- Investment advisories and School fees planning
- Income protection, Mortgages, and Estate planning
Does HSBC Offer Equity Release?
No, although HSBC aren't equity release specialists, it does, however, provide a range of other mortgage products.
Does HSBC Have an Equity Release Calculator?
No, although HSBC does not have an equity release calculator, it does offer a range of mortgage calculators.
Also, you are welcome to try our free calculator for an estimate of how much cash you can unlock from your property.
Read More: Equity Release Schemes Calculator
HSBC's Equity Release Alternatives and Mortgage Plans
While HSBC does not offer equity release, it has a range of mortgage options.
Alternatives to Equity Release
HSBC’s alternative to equity release is to either borrow more or to extend the term on your current mortgage to give you extra cash.
You can do this by:
- Taking out a secured loan of up to £10,000 against your property.
- Extending the term of your mortgage and thereby reducing your monthly payments.
- Remortgaging with HSBC to give you a better deal by reducing your monthly payments.
Mortgage Plans
HSBC has a wide range of award-winning mortgage plans to suit your specific needs.
HSBC Mortgage plans:
- Remortgage Plan: An option for those considering transferring their mortgage from another bank.
- Mortgage to Move Home: For those transitioning to a new home and contemplating a mortgage switch.
- Buy-To-Let Mortgage: Designed for those looking to buy properties to rent out.
- First-Time Buyer Mortgage: For individuals who are planning to buy their first home.
Learn More: Switch Your Equity Release Plans
What Is the Costs of HSBC Mortgages?
The costs of HSBC mortgages include fees and interest rates:
- Fees - Depending on the product, HSBC's fees can range from £0 to £1,499.
- Interest Rates - HSBC’s mortgage interest rates4 are depended on the type of mortgage and each customer's individual circumstances. Please note that interest rates for equity release usually vary between 6.14% to 6.46%*, which may be slightly higher than standard mortgage rates.
*While we review our rates frequently, these may have changed since our last update.
HSBC Pros and Cons
HSBC’s biggest advantage is that it has been established as a trusted financial service provider over many years, however the downside is that it does not offer equity release plans.
Pros
Exploring the pros:
- Long-standing history in the banking sector
- Regulated by industry bodies like the FCA and PRA
- Competitive interest rates
Cons
Exploring the cons:
- No specific equity release plans
- No exclusive products for retirees
- Traditional banking protocols may be less adaptive than digital-first banks.
HSBC Customer Reviews and Ratings
HSBC reviews are mixed, with many customers complementing in-branch service.
Reviews and ratings for HSBC can be found on:
How HSBC Handles Complaints and Feedback
HSBC provides various avenues for customers to lodge their complaints and give feedback.
Lodge a complaint in one of 4 ways:
- Online live chat.
- In-person with a consultant at an HSBC branch.
- Writing: HSBC Customer Service Centre, BX8 1HB.
- Phone: Dedicated Customer Service Lines for:
- Personal Banking: 03457 404 4040
- Premier Banking: 03457 707070
- Business Banking: 03457 606060
Feedback can also be shared or viewed on platforms such as Trustpilot or Feefo.
Is HSBC Regulated?
Yes, HSBC is regulated by the following regulatory bodies:
Financial Conduct Authority (FCA)
HSBC is one of nearly 50,000 businesses in the UK regulated by the Financial Conduct Authority (FCA) to ensure good conduct by the financial services sector.
According to the FCA's records, the firm is registered as HSBC UK Bank Plc.
It is permitted to provide financial services for banking, insurance, mortgages and home finance, consumer credit, pensions and investments.
Prudential Regulation Authority (PRA)
HSBC is also a member of the Prudential Regulation Authority (PRA), which forms part of the Bank of England and is responsible for supervising financial service providers to ensure products are offered safely and soundly.
Irish Financial Regulator
Since HSBC also operates in the Republic of Ireland, it is overseen by the Irish Financial Regulator, which regulates over 10,000 financial services firms to ensure fair and proper conduct.
How to Contact HSBC
Contact HSBC in one of 3 ways:
- Phone: +44 207 9918 888
- Address:1 Centenary Square, Birmingham, West Midlands, B1 1HQ.
- Online: via its website
How Did We Review the Info on HSBC?
We reviewed HSBC based on the following:
- Reputation and History – How many years they have been in business, customer reviews, and industry rewards received.
- Financial Strength – Ensuring it is going strong and has adequate funds to meet long-term commitments.
- Product Range – We will favour companies offering a variety of equity release schemes with greater product flexibility.
- Interest Rates and Fees – We have reviewed competitive rates compared to industry averages and they must be fully transparent about rates and fees without hidden costs.
- Customer Service and Support – When and how it is available, response times, and available online educational resources. As well as online tools, like a calculator.
- Code of Conduct and Compliance – We only considered companies that adhere to recognised industry standards and codes.
- Industry Insights and Peer Reviews – We care about a company’s industry-wide reputation.
- Innovation and Technology – Is there a streamlined, digital application process?
- Client Testimonials – Success stories and the complaints resolution process.
Common Questions
Is HSBC a Member of the Equity Release Council?
Why Does HSBC Not Directly Offer Equity Release Products?
How Do HSBC’s Equity Release Alternatives Compare With Other Banks’ Direct Equity Release Products?
Are There Any Age Restrictions in Regards to HSBC’s Mortgage Services and Alternatives to Equity Release?
Is It Possible to Make Partial Repayments or Overpayments on HSBC’s Alternative Products Without Incurring Penalties?
What Protection Measures Does HSBC Have for Its Mortgage Products in the Event of Market Downturns or Negative Equity Scenarios?
How Does HSBC Handle Joint Applications for Their Mortgage Services and Alternatives to Equity Release?
Can I Work for HSBC?
In Conclusion
As the financial landscape evolves, HSBC remains a significant player, consistently adapting its products to cater to the needs of its diverse clientele.
As we have navigated the particulars in this article, it is evident that staying informed is crucial for making sound financial decisions.
If you are considering HSBC for its alternatives to equity release, make sure you consult with a professional adviser to ensure you make choices tailored to your unique financial circumstances.