Secured Loans from HSBC

A secured loan is a way for you to borrow money by securing the loan against an asset, usually your home. As this is far safer for HSBC as a lender, cheaper rates tend to be offered. They also enable you to obtain a larger loan with a longer pay off period. However, as these loans use your property as collateral, it’s important to make sure you are comfortable with the repayments, as your home could be at risk if you are unable to repay the loan.

Loan-to-Value Ratio

The amount that HSBC will be able to lend will be decided upon by your loan-to-value ratio (LTV). It’s calculated by comparing the total amount of debt you wish to secure against your property, to the properties market value. E.g. If you wish to borrow £20,000 on top of a £55,000 mortgage, secured against a £100,000 property. Your LTV ratio would be 75% or £75,000/£100,000.

A better deal tends to be given to those with an LTV lower than 60%, and usually won’t go above 80%

Benefits of HSBC Secured Loans

• Able to borrow up to an LTV ratio of 90%
• Able to repay over 5-30 years
• Able to make fixed monthly repayments.
• Available to non-existing HSBC customers

Restrictions on HSBC secured loans

• A minimum of £10,000 must be borrowed
• You need to make sure that you are able to make the scheduled repayments as if you’re not your home may be at risk