Getting you home HSBCMortgages and HomeOwner Loans Your home is as individual as you are. That's why we offer a range of attractive mortgage options to choose from. Whether you're buying your first home, moving up the ladder or thinking of moving your mortgage to us, our aim is to make the process as simple as possible for you. The first step is to get @ Decision in Principle from us. For more information, please pick up a copy of our ‘Mortgages — Getting Started’ brochure from your local branch. Once you've got a Decision in Principle, you can choose to make an appointment with one of our Mortgage and Protection Managers in branch, or one of our Mortgage Advisers over the telephone. They can recommend the most suitable option based on the details you provide. Alternatively, if you already know what type of mortgage you want, you can apply online at hsbe.co.uk/mortgages. If you make an application online, you won't receive any advice, so please think carefully about whether this is the right option for you.Look inside Mortgages and HomeOwner Loans 2 Your circumstances 4 How much can you borrow? 6 Paying back your mortgage 7 Interest rates - what you need to know 8 Buy to Let Mortgages and Buy To Let HomeOwner Loans 10 HSBC protection products a Life Insurance 12 Buying your first home or moving home 13 Moving your mortgage to us 14 Borrowing more 15 Mortgage jargon 16 Important notes 18 Come in and make an appointment with a Mortgage and Protection Manager Call 0800 169 6333 Textphone 03456 010 750. Visit hsbe.co.uk Telephone lines are open 8am to 10pm every day (except Christmas Day, Boxing Day and New Ye: ‘To help us continually improve our service and in the interests of security, we may monitor and/or communications with us,Your circumstances Buying your first home It’s our goal to make your dream of buying your first home achievable, whether it's helping you understand the home buying process or making things easier when it comes to fees. Moving to a new home If you're ready to move on, we could help you get where you need to be. And if you're happy with your existing HSBC mortgage rate, you may be able to transfer it to your new mortgage when you move (subject to conditions). See Portability on page 9 for more details. Moving your mortgage to us If you've been on the same mortgage interest rate for a while, or have moved from a fixed rate to a variable rate, it's worth checking that you're still getting value for money. We offer a range of fixed rate, discount rate and tracker rate mortgages Borrowing more with a HomeOwner Loan We could all do with a little extra cash sometimes. Perhaps you're planning a few improvements or changes to make your property your dream home. Or maybe you need a new car, funds to pay off an existing loan, or are even planning the trip of a lifetime. An HSBC HomeOwner Loan could help you use the value in your home to achieve your goals - and our goal is to make it as straightforward as possible. Subject to eligibility, our HomeOwner Loan: > Is available on any of our mortgage rates. > Has a minimum loan amount of £10,000. Certain exclusions apply - please ask for details or visit www.hsbe.co.uk/ mortgages/existing-homeowners For details on Buy To Let Homeowner Loans, please see Page 10. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.Moving to a new mortgage rate At HSBC we don't reserve the best deals for new customers. If you're an existing HSBC customer, we want you to know we value your business. That's why when your HSBC fixed or discount rate comes to an end: > You can apply for another of our attractive fixed, discount or tracker rate offers; or > You'll move to the HSBC Variable Rate. Additional offers may be available from time to time. You can get advice and a recommendation on the right mortgage option for you by speaking to a Mortgage and Protection Manager in branch, or a Mortgage Adviser by using our telephone service. Alternatively, if you already know what you're looking for and don’t need advice, you can apply online. Help to Buy HSBC subscribes to the UK Government's Help to Buy: Mortgage Guarantee Scheme. Whether you're looking to buy your first home or move to a new one, you may be eligible to apply for a mortgage via the scheme with a 5% deposit. For more details see hsbe.co.uk/mortgages/help-to-buy or helptobuy.org.uk. hi... to Buy, Backed by HM GovernmentHow much can you borrow? How much can you borrow? Because we're a responsible lender, we want to make sure you can afford the repayments on any mortgage you take out with us. The types of mortgage available to you and the amount you can borrow will depend on a number of factors, including: > Your income and outgoings > The value of the property > The repayment and interest rate options you choose > Your planned retirement age Loan to Value (LTV) The loan to value ratio is the amount you need to borrow in comparison to the value of your property. For example, if you are borrowing £60,000 to purchase a property worth £100,000, the LTV ratio is 60%. The maximum LTV we'll lend you will depend on your individual circumstances, the property, the mortgage you choose, the amount you wish to borrow and the rate or pricing package you select. Try our interactive online tools For a quick guide to how much you could borrow, to compare the various mortgage options available, or for an idea of what your monthly payments could be, try out our fast, easy interactive tools at www-hsbe.co.uk/ mortgages. Our ‘Find and Compare’ tool also provides a Key Facts Illustration that details the full cost of a mortgage. Remember, the illustrations provided by these tools don’t constitute a mortgage offer, or provide all of the details that you need to choose a mortgage. For advice please arrange an appointment with one of our Mortgage and Protection Managers in your local branch or one of our Mortgage Advisers on the telephone. If you're a resident of the Channel Islands or Isle of Man, please contact your local branch for an indication of how much you could borrow.Paying back your mortgage There are two methods of mortgage repayment - Capital Repayment and Interest Only. All HSBC mortgage interest is calculated daily. Capital Repayment Each month you'll make a single payment to pay back some of the capital borrowed and to cover the interest accruing. If you make all the payments required and on time, your mortgage will be fully repaid at the end of the term. Interest Only Interest Only mortgages offer lower monthly payments than an equivalent Capital Repayment mortgage, because you only pay interest accruing each month You must also have a credible repayment strategy in place to borrow using an Interest Only mortgage. HSBC Interest Only mortgages are only available to HSBC Premier customers. If you're an existing customer, please speak to your Premier Relationship Manager for more details. If you're interested in becoming an HSBC Premier customer, please speak to our in-branch team, call us on 03457 707 070, of visit www. hsbe.co.uk/premier for full details and eligibility criteria.Interest rates — what you need to know Like your home, every mortgage is individual. Your choice of interest rate and, for a Capital Repayment mortgage your loan term, will help determine what you pay every month Fixed Rate The interest rate is fixed until a specific date - so whatever happens to the Bank of England interest rate during this period, your monthly payments stay the same. At the end of the fixed rate period, you'll automatically move onto the HSBC Variable Rate. You can choose to stay on this rate, or you could apply for a new fixed, discount or tracker mortgage available at that time, Discount Rate With a discount rate, you receive a discount on the HSBC Variable Rate for a set period. At the end of this period, you'll automatically move onto the HSBC. Variable Rate. You can choose to stay on this rate, or you could apply for a new fixed, discount or tracker mortgage available at that time. Overpayments and Early Repayment Charges - You can, if you wish, choose to make overpayments on your mortgage. Some of our mortgage products have an Early Repayment Charge (ERC) that applies during the early years of a new mortgage or, if you already have a mortgage with us and switch products, for a set period following the switch. In each of the years when the ERC applies, you will have an annual overpayment allowance which will give you the flexibility of making some overpayments without incurring the ERC. As long as you do not exceed your annual overpayment allowance, you can make as many overpayments as you like within that year either by way of increasing your monthly mortgage payments or making lump sum payments. If you exceed your annual overpayment allowance, the ERC will be charged on the amount you have repaid over the allowanceLife Time Tracker The tracker interest you pay is an agreed percentage above the Bank of England's base rate. As the Base rate rises and falls, your tracker will track these changes, and so rise and fall accordingly. This wil affect your monthly payments. Should Base rate rise you can select to. move to another rate where booking fees may be payable. Overpayments - With our tracker rate mortgages, you have the flexibility to make unlimited overpayments or pay lump sum reductions without charge at any time. Mortgage Specials Any Discount, Tracker and Fixed Rate Mortgage Specials available will have their own pricing and fee packages. Please ask one of our Mortgage and Protection Managers in branch or one of our Mortgage Advisers over the telephone for further details of our current offers. Portability — can | transfer my existing mortgage deal to a new property? If you want to move home you may be able to transfer your existing interest rate to your new property. This is subject to us approving the mortgage for your new home and other conditions, and only applies to the remaining amount to be repaid on your existing mortgage. In order to avoid incurring any Early Repayment Charge that may otherwise be payable, the sale and new purchase must happen at the same time. Where sale and purchase are at different times you must draw down the new loan within 6 months of repaying the existing loan.10 Buy to Let Mortgages and Buy To Let HomeQwner Loans Our Buy to Let mortgages and Buy To Let HomeOwner Loans are available to customers meeting the eligibility criteria below (visit www:hsbe.co.uk/buy-to-let- mortgages for more details) Buy to Let mortgage eligibility criteria > The property must be in the UK, Channel Islands or Isle of Man. > We require the first legal charge (first ranking standard security in Scotland) cover the property. > The maximum loan to valuation (LTV) for Buy to Let mortgages is 75%, meaning you'll need a minimum deposit of 25%. > A Standard Valuation Report is required for all applications. > The property must only be let under an assured short-hold tenancy (AST) or a company let agreement > Buy to Let mortgages are available from £25,000. The maximum loan amount will vary according to the Loan to Value ratio. Please ask in branch, call us on 0800 028 3844, or visit our website for further details > The maximum mortgage term is 25 years. The property must be adequately insured at all times. > All mortgages are subject to underwriting and lending criteria. Terms and conditions apply. To apply for @ Buy to Let mortgage, make an appointment with one of our Mortgage and Protection Managers in branch, call one of our Buy To Let Mortgage Team on 0800 028 3844, or apply online at hsbo.co.uk/mortgages. Buy to Let HomeOwner Loans If you're an existing HSBC Buy to Let customer and would like to make improvements to your Buy to Let property or to release equity in it, you could apply to borrow more on your mortgage. Our Buy to let HomeOwner Loans: > are available on any of our Buy to Let fixed and tracker mortgage rates. > have a minimum loan amount of £10,000. Please see above for full details of the Buy to Let mortgage eligibility criteria. Remember, you're responsible for making the monthly payments even when the property doesn’t have a tenant. Not all properties will grow in value or provide sufficient income to cover all your associated costs. Your property may be repossessed if you do not keep up repayments on your Buy to Let mortgage.VW HSBC protection products Home insurance It's a condition of your mortgage that you have adequate buildings insurance in place for its duration. This doesn’t have to be taken out through HSBC, however, we do have options available. HSBC Buildings and Contents Insurance is provided by Aviva Insurance Limited and is subject to eligibility criteria. Underwriting terms and conditions apply. For further details, please visit www.hsbe.co.uKinsurance When you select an HSBC Buildings and/or Contents policy you benefit from: Buildings insurance > Unlimited buildings sum insured. > Accidental damage included as standard on fixed glass, sanitary fittings, cables and underground pipes. > Payment of hotel accommodation costs of up to £1000 if your home is made uninhabitable by an insured cause > Cover for your sheds, greenhouses and outbuildings Contents insurance > Automatic accidental damage cover included for items such as televisions (including digital and satellite receivers), DVD/Video players and recorders, games consoles, home computers (excluding portable computers) and audio equipment > Personal money covered in the home up to £500. > Full cover when your home is unoccupied for up to 30 days in a row. > Replacement as new on all items except clothing and household linen. For more information on discounts for combined and online policies ask in branch today, visit www.hsbe.co.uk/insurance or call 0800 169 6333. See the Important notes section of this brochure for opening hours.12 Life Insurance Protecting you, your lifestyle and your family Becoming seriously ill, or worse, could result in financial hardship for you and your loved ones at a particularly difficult time.* With HSBC you can protect yourself and your lifestyle with policies including Life, Critical liness and Income Cover. You choose how much cover you need for each policy, so you only pay for the protection you need. HSBC Life Insurance is provided by HSBC. Life (UK) Limited. Lump sum payment Depending on the level of cover you choose, you can have the peace of mind that your loved ones would be supported should the worst happen. Life Cover* > Lump sum benefit payable upon death or upon earlier diagnosis of a terminal illness. > Interim Cover - If you've taken out ‘this policy in connection with an HSBC. residential mortgage, once your life cover application has been accepted and you've exchanged contracts on your property, we'll give you up to 90 days Interim Cover while you're waiting for your mortgage to complete. > Accidental Death Benefit - While we're processing your Life Cover application we'll even give you accidental death benefit cover (up to a maximum of 90 days and £250,000). Critical Illness Cover* > Lump sum benefit payable if you are diagnosed with a specified illness or undergo a specified surgical procedure. Monthly Benefit Income Cover*/ Income Cover (5 Year)* Protects lost income if you are unable to work due to illness or injury. Pays you a maximum monthly benefit amount up to £2,500 per month or up to 50% of your gross taxable income (whichever is the lower amount). Monthly benefit is paid if you're prevented from working for more than 13 weeks, or when your sick pay ends [if later) and is payable until you return to work or until the policy expiry date, whichever is earlier. For Income Cover (5 Year), the benefit is payable until you return to work or for five years, whichever is earlier. * Each HSBC protection policy is subject to eligibility criteria and underwriting, Policy Terms and Conditions, limitations and exclusions apply. Residents of the Channel Islands, the Isle of Man and any other country outside the UK are not eligible for these HSBC protection polices. For further information, please see waanhsbc.co.uk/ insurencefifeiliness-income-cover.13 Buying your first home or moving home Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 What happens next? You can speak to one of our Mortgage and Protection Managers in branch or one of our Mortgage Advisers over the telephone. They'll recommend the most suitable option for you based on the information you provide. They'll also review your options for choosing a conveyancer (required to complete the legal formalities), detailed in the "Your Conveyancing Options" leaflet * Wee can introduce you to a solicitor or licensed conveyancer firm on the HSBC Managed Panel, or; * You can choose your own Conveyancing Quality Scheme (CQS) solicitor firm or licensed conveyancer firm, who can also act for the Bank, or; * You can use a non-CQS solicitor, in which we case we'll instruct our own solicitor or licensed conveyancer. Alternatively, if you already know what type of mortgage you want, you can apply online at hsbe.co.uk. If you make an application online, you won't receive any advice, so please think carefully about whether this is the right option for you. y If your application is approved, we'll send you a Mortgage Offer for you to review and accept , either online or by post. We'll arrange a valuation to ensure the property is suitable as security. y ‘We'll prepare a legal mortgage document and send it to your solicitorsflicensed conveyancer for you to read and sign. Once alll the legal formalities are complete and all conditions of the Mortgage Offer have been met, your solicitorficensed conveyancer and the seller's solicitoricensed conveyancer will mutually agree a completion date. We'll then transfer the mortgage funds to your solicitor/icensed conveyancer to enable completion of the purchase. y Our solicitors/licensed conveyancers will complete the mortgage to HSBC and register it at the Land Registry against the title to the property. y We'll confirm your first and subsequent monthly payments by letter. This process applies to the UK only and not to Channel Islands and Isle of Man applications.14 Moving your mortgage to us Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step7 What happens next? You can speak to one of our Mortgage and Protection Managers in branch or one of our Mortgage Advisers over the telephone. They'll recommend the most suitable option for you based on the information you provide, Alternatively, if you already know what type of mortgage you want, you can apply online at hsbe.co.uk. If you make an application online, you won't receive any advice, so please think carefully about whether this is the right option for you. y If your application is approved, we'll send you a Mortgage Offer to review and accept, either online or by post. We'll arrange a valuation on your property if required and undertake Land Registry Searches. Where our solicitorsficensed conveyancers are acting, you can expect a phone call from them within 24 to 48 hours of the application being approved to confirm the details and take you through a questionnaire. If the solictorsficensed conveyancers are unable to contact you by phone they'll send the questionnaire to you by post. We'll request details from your existing lender, including a redemption statement, and prepare the legal mortgage document, send it to you to read and sign in the presence of awitness. ‘Once all of the legal formalities are complete and all conditions of the Mortgage Offer have been met, welll transfer the funds required to repay your existing lender, who should release their charge over the property. Our solicitors/licensed conveyancers will complete the mortgage to HSBC and register it at the Land Registry against the title to your property. Y We'll confirm your first and subsequent monthly payments by letter. This process applies to the UK only and not to Channel Islands and Isle of Man applications.15 Borrowing more Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 What happens next? You can speak to one of our Mortgage and Protection Managers in branch or one of our Mortgage Advisers over the telephone, They'll recommend the most suitable option for you based on the information you provide. Alternatively, if you already know what type of mortgage you want, you can apply online at hsbe.co.uk. If you make an application online, you won't receive any advice, so please think carefully about whether this is the right option for you. y IF your application is approved, we'll send you @ Mortgage Offer to review and accept, either online or by post. We'll complete the necessary checks and arrange a valuation of your property. y If you already have a mortgage with us — we'll check whether the existing legal mortgage is suitable to secure the new borrowing. A new mortgage may be required. y We'll prepare the legal mortgage document and send it to you to read and sign in the presence of a witness, if required We'll transfer the funds to your bank account or, where appropriate, to your account holding branch We'll register our new morigage at the Land Registry against the title to the property, if appropriate. We'll confirm your first and subsequent monthly payments by letter. This process applies to the UK only and not to Channel Islands and Isle of Man applications.16 Mortgage jargon Arrangement Fee - The administration fee charged by some lenders for arranging a mortgage. Bank of England Base Rate - The variable interest rate set by the Bank of England Monetary Policy Committee (MPC). Booking Fee ~ A non-refundable fee charged on some mortgages to secure a particular mortgage deal Building survey and valuation report — This is a far more detailed structural report on a property, carried out by a building surveyor rather than a valuer. The report does not necessarily include a valuation of the property. It is more suitable for properties over 90 years old buildings of architectural or historic interest, listed buildings and buildings of unusual construction. Completion Fee — A fee for electronically transferring the mortgage funds to the borrower's solicitor or existing lender. Credit Scoring - A score calculated using a series of questions about your finances to establish whether you'll be able to repay a loan or credit. This will usually involve a credit history check with a credit reference agency Early Repayment Charge — Some of ‘our mortgage products have an Early Repayment Charge (ERC) that applies during the early years of a new mortgage or, if you already have a mortgage with us and switch products, for a set period following the switch. In each of the years when the ERC applies, you will have an annual overpayment allowance which will give you the flexibility of making some overpayments without incurring the ERC. As long as you do not exceed your annual ‘overpayment allowance, you can make as many overpayments as you like within that year either by way of increasing your monthly mortgage payments or making lump sum payments. If you exceed your annual overpayment allowance, the ERC will be charged on the amount you have repaid over the allowance. Early repayment charges don’t apply to tracker mortgages. Equity - The difference between a property's value and the mortgage left to pay.Homebuyer report and valuation report - This provides both a valuation and survey of the general condition of the property. Only a surface examination of those parts which are visible and readily available for examination is carried out. Services are inspected but not tested. The degree of structural examination carried out is often acceptable to many customers, particularly where the property is less than 90 years old. Interest Rate — The percentage rate at which interest on your mortgage is calculated. Interest Type — An interest rate may be variable (eg the lender's standard variable rate), fixed (a certain rate fixed for a given term set by the lender), discount (a percentage below the lender's variable rate, usually for a given term) or a tracker rate, set at a fixed percentage above the Bank of England (BoE) base rate and which will rise and fallin line with changes to it. Loan To Valuation (LTV) - The loan to value represents the percentage of the value of the property which the borrower is seeking to borrow. Eg, a £100K property with an £80K morgage = an 80% LTV. The maximum LTV we will lend will depend on your individual situation, the property, the loan you choose and the amount you borrow. Remortgage - When a person uses a new mortgage to repay an existing mortgage and transfer from another lender. Security - The security for the Mortgage Debt stated in the Offer Document, which will be a first legal charge over the property Service Fee - A fee some lenders charge their customers; for example when they provide information requested by another lender. ‘Stamp Duty - The tax you may pay when you buy your property, depending on its value, Standard Valuation - Also referred to as a professional valuation, this term describes the basic valuation conducted on behalf of a mortgage lender to enable them to assess if the property is suitable for the proposed mortgage. For a full list of Mortgage jargon please visit www.hsbe.co.uk/1/2/mortgages/jargon.18 Important notes Before lending you money, we want to be sure you can afford the monthly payments. Our mortgages and other secured loans are subject to security and status. This means a charge will be taken over the property, and that all applications are subject to credit scoring, a Credit Reference Agency search and full credit assessment. Mortgage Key Facts Illustrations are available by calling 0800 169 6333 (textphone 03456 010 750), speaking to a Customer Services Officer in branch, a Mortgage Associate over the telephone or online using our Find and Compare Tool Please note Key Facts Illustrations and Life Insurance are not applicable to customers in the Channel Islands and Isle of Man. Lines are open 8am to 10pm every day (except Christmas Day, Boxing Day and New Year's Day) subject to scheduled and emergency maintenance periods. To help us continually improve our service and in the interests of security, we may monitor and/or record your communications with us. Textphone service is not available in the Channel Islands and Isle of Man. Letting your residential property without our prior written consent is not permitted under the terms of your mortgage. The Bank of England Base Rate refers to the variable interest rate set by the Bank of England Monetary Policy Committee (MPC) Our fixed, discount and tracker rate offers may be changed or withdrawn at any time without prior notice. If you're an existing HSBC customer, it's very important that you keep us informed when you move home so that we can keep our address records up to date. We, or any other member of the HSBC Group, may take whatever action we consider appropriate to meet any obligations, either in the UK or elsewhere in the world, relating to the prevention of fraud, money laundering and terrorist activity and the provision of financial and other services to persons who may be subject to sanctions. This may include, but is not limited to, investigating and intercepting payments into and out of your account(s) (particularly in the case of international transfers of funds) and investigating the source. Your home may be repossessed if you do not keep up repayments on your mortgageCustomers with disabilities If you'd like this in another format such as large print, Braille or audio, please contact us. If you have a speech or hearing impairment and would like more information about the products and services in this brochure, you can use our textphone service. Simply call 03456 010 750 (+44 207 088 2077 if you're calling from overseas). HSBC Bank Plc, 8 Canada Square E14 SHO is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm reference number is 114216. In Jersey HSBC Bank plc is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation and Investment Business and we abide by the Code of Practice for Consumer Lending. In Guernsey HSBC Bank pic is licensed by the Guernsey Financial Services Commission for Banking, Insurance, Collective Investment Schemes and Investment Business. In the Isle of Man, HSBC Bank plc is licensed by the Isle of Man Financial Supervision Commission and our principal address is: HSBC Bank ple, PO Box 20, HSBC House, Ridgeway Street, Douglas, Isle of Man IM99 1AU.For more information about any products in this brochure Call 0800 169 6333°* Textphone 03456 010 750 Come in and speak to a Mortgage and Protection Manager Visit hsbe.co.uk c Download our app isbc “If you are resident in the Channel Islands or Isle of Man, please contact a Mortgage Adviser at your local branch This brochure has been printed on paper gerten__| Made from responsibly-managed forests ESC sc: cvs7ssa HSBC Bank plc is established at 8 Canada Square, London E14 SHQ which is its registered office. HSBC Bank pic is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our firm reference number is 114216. In the Channel Islands, HSBC Bank ple is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation and Investment Business and licensed by the Guemsey Financial Services Commission for Banking, Insurance, Collective Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. We abide by the Jersey Codes of Practice for Consumer Lending, Issued by HSBC Bank ple Customer Information: PO Box 6201, Coventry CV3 9HW PO Box'4, St Holier, Jersey JE4 8NJ PO Box 31, St Peter Port, Guernsey GY1 3AT PO Box 20, Douglas, Isle of Man IM99 1AU Printed by St Ives Managament Services Ltd ‘98514-8 MICP45214 09/15 OHSBC Bank ple 2015. Al Rights Reserved, ACI2586