If you want a mortgage from HSBC you have to go directly to them – via a branch, phone or online – but as from Monday 6 October that will change.
For the first time HSBC will offer its mortgage products through an intermediary. This is a big change around as HSBC is the only large lender not to use mortgage brokers.
Its first partnership is with Countrywide Mortgage Services but it does intend to use other brokers going forward.
Peter Dockar, head of mortgages at HSBC, said the bank is evolving its mortgage proposition and, following new mortgage rules surrounding the introduction of the Mortgage Market Review (MMR) on 26 April 2014, the time is right to expand.
Dockar said: “The MMR has provided clarity between the role of the lender and the role of the intermediary. We want to be where customers are, whether that’s in branch, online or though intermediaries.“
The bank is keen to lend and will provide mortgages up to a maximum of 80 per cent LTV through Countrywide: “The partnership with Countrywide is the first phase, this is not a pilot scheme. We have a firm intent to work with other brokers going forward. We want to expand our reach and build up our market share.”
HSBC launched its online mortgage application capability in February, which is aimed at people who are internet savvy and financially competent, and has lent £1 billion so far online.
For people who know what they are doing it can be a quick way to apply for a mortgage. Dockar confirmed: “We actually did complete a full offer in 24 minutes – although it was for a straight forward case.”
Nigel Stockton, financial services director at Countrywide, said: “HSBC has an appetite for high quality lending and we are delighted and proud that HSBC has chosen Countrywide to work with them as they look to provide mortgages through intermediaries for the first time in the UK.
“Our focus is on maintaining excellent standards and speed of service. We are in no doubt that we will prove Countrywide can provide HSBC with more clients for their market leading products and we look forward to working together.”
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries welcomed the news and said he was delighted to see HSBC recognise “the real value of the professional intermediary market.”
He commented: “As both parties have said this is an important step forward in the development of the mortgage market post the financial crisis and the deployment of the Mortgage Market Review. Whist this is a small and tentative step, I am delighted with the commitment from both parties to expand on this. I have no doubt that as HSBC develops it systems it will look to increase distribution through a wider range of partners.”
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