Energy-efficient home mortgage
A mortgage with cashback on selected products for UK-resident buyers and homeowners purchasing or remortgaging an energy-efficient home.
Buy a home or move your existing mortgage to HSBC if the property meets its energy-efficiency criteria. Selected mortgages pay cashback on completion; the amount depends on the product and loan-to-value, which is the loan as a share of the property value.
This is a loan secured on your home. With a repayment mortgage, payments cover interest and reduce what you owe. Your home may be repossessed if you cannot keep up repayments.
With a fixed-rate mortgage, monthly payments stay the same during the fixed-rate period. A tracker mortgage follows the Bank of England base rate, so your monthly payments can rise or fall.
Fixed-rate mortgages allow annual overpayments of 10% of the outstanding balance, calculated each year on the anniversary of the fixed-rate period starting. Overpayments above the allowance incur an early repayment charge of 1% for each remaining year of the charge period, reducing daily, capped at 5% of the overpayment after the allowance. The charge can also apply if you switch mortgage rate or lender during the fixed period. Tracker mortgages have no early repayment charge and allow unlimited overpayments.
For remortgaging, some products combine the energy-efficiency cashback with standard legal fees paid by HSBC. If you instead choose a product with the combined energy-efficiency and standard cashback package, you must appoint and pay your own solicitor. HSBC checks that your chosen legal firm meets its requirements; its conveyancing guide explains the professional registration, staffing and insurance criteria.
Eligibility
- You must be a UK resident aged 18 or over. The household route covers a residential purchase, moving home or remortgaging to HSBC.
- The property must have an in-date Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) rated A or B. An EPC grades energy efficiency from A, the most efficient, to G, the least efficient, and is valid for 10 years. You do not need to submit the EPC, but the property must have the qualifying certificate.
- For a property under construction, the builder or developer provides a PEA based on the design and planned materials. You must submit a copy rated A or B during your application.
- HSBC assesses your circumstances and carries out a formal credit check before confirming how much you can borrow.
How to apply
- Status
- Open continuously
- Round restrictions
- Subject to HSBC lending assessment and the selected product’s terms.
Start with HSBC’s mortgage application page and prepare details of your income, employment and outgoings. Get a decision in principle, then make the full mortgage application. The decision in principle indicates what you might borrow; it is not a mortgage offer.
You can apply with an adviser by phone or in a branch. An adviser is required for cases that the full online service cannot handle, including self-employed income, scheme purchases such as Shared Ownership, debt consolidation, a mortgage term extending beyond retirement or age 70 (whichever is earlier), simultaneous borrower and rate or home-loan changes, or more than £2 million of HSBC borrowing on one property. HSBC’s application page gives the route to use if you do not meet the initial online decision-in-principle criteria.