HSBC Holdings PLC


HSBC, the world's largest banking and financial services group listed on the FTSE with a market capitalization of £115.8 billion and the 8th largest company according to Forbes Magazine, enjoyed humble beginnings as the Hongkong and Shanghai Banking Corporation in 1865. In 1993, HSBC, as a condition of the takeover of Midland Bank, moved its headquarters from China to London.

Keeping up with its corporate byline of "A world of experience; a world of potential" HSBC embarked on expanding its global presence with major acquisitions in South America - purchasing Banco Bamerindus of Brazil and Robers SA de Inversiones of Argentina in 1997. In 1999, HSBC then acquired the Republic National Bank of New York, and in 2000 purchased Credit Commercial de France.

Global acquisitions continued in 2001, by acquiring Demirbank, an insolvent Turkish Bank. Then in 2002, the acquisition of Grupo Financiero Bital SA de CV, meant the takeover of the 3rd largest retail bank in Mexico and the acquisition of Household Finance Corporation - a US credit card issuer - which under the name of HSBC Finance became the second largest subprime lender in the US. 2003, marked the next purchase of Poliski Kredyt Bank SA of Poland, then 2004 the expansion into China, meant buying up 19.9% or the Bank of Communications of Shanghai.

Gaining a larger foothold back home in the UK, saw the acquisition of Marks & Spencer Retail Financial Services Holdings Ltd in 2004. The year 2005, did not see any slowdowns, with the purchasing of Metris Inc, a US credit card issuer, and a 70.1% interest in Dar Es Salaam Investment Bank in Iraq. 2006 saw HSBC purchasing 90 branches of the Banca Nazionale del Lavoro in Argentina. Then in 2007, an additional purchase of The Chinese Bank increased their presence in Taiwan. IN 2008, HSBC acquired IL&FS Investment, an Indian retail broking firm.

However, within the boom of takeovers, acquisitions, and mergers, the one miscalculation can be pointed out distinctly back to the Household Financial Corporation deal of 2002. No one could have possibly have predicted the crippling affect the downturn in the economy would have had on that industry. In March 2009, HSBH announced the shut-down of the entire branch network of the HSBC Finance resulting in 6,000 job losses and only leaving the credit card operation to continue. However, HSBC continues strong weathering the global economic storms and still reigns high on the heap. Offering 8,000 offices in 88 countries across the world they serve around 100 million customers. UK customers are serviced by over 1500 branches and not only does the HSBC offer the full range of financial services and products to meet the needs of those customers, HSBC also has a very strong commitment to the environment, sustainability, and education by investing over $100US and 4500 hours of staff time to global projects to ensure a thriving society.

Remortgages offered through RBS

Within the full range of financial products and services, Remortgages offered by HSBC include competitive rates, a wide range of fixed and variable deals and their application process is smooth and easy. Their remortgage options will vary from time to time and they occasionally offer remortgages to a specific buyer-type or limit the amount of the remortgage to a maximum loan amount. All remortgage options are subjected to a maximum loan to value (LTV- the amount of the loan as compared to the market value of the property).

The first option is referred to as a Fixed Rate Remortgage. This type of remortgage includes:

  • A repayment schedule that is predetermined with a rate that does not change for the duration of the term. Therefore monthly payments stay the same
  • HSBC offers fixed-rate terms for 2 or 5 years
  • Early repayment fees are applicable during the term if you increase your payments by more than 20% or pay down the whole amount.
  • If you move, you can transfer your mortgage
  • There is no exit fee

Options include:

  • LTV ratios of 90%, 80%, 70%, or 60%
  • a 2 year fixed special
  • a 2 year fixed standard
  • a 2 year fixed advanced standard for advance customers
  • a 2 year fixed premier standard for premier customers
  • and the same options within the 5 year term.

The second option, the HSBC Tracker Remortgage includes:

  • interest that is paid for an agreed amount above the Bank of England's Base rate that will fluctuate - therefore affecting your monthly payment
  • a lifetime tracker rate, so they track the fluctuating rate for the lifetime of the mortgage
  • he option of switching to a fixed rate term if base rates rise subject to a fee
  • no fees if you make additional payments or exit the plan
  • you can transport the mortgage if you purchase a new home

Options include:

  • LTV of 90%, 80%, 70% and 60%
  • Life Time Tracker Special
  • Life Time Tracker Standard
  • Life Time Tracker Fee Free
  • Life Time Tracker Advance Standard for advance customers
  • Life Time Tracker Premier Standard for premier customers.

The third remortgage option is the Discount Mortgage. This product includes:

  • Variable interest rates that are lower than the HSBC variable rate for an agreed period (ie two years)
  • Fluctuating mortgage payments as the HSBC rates change
  • Early repayment fees during the term and if you increase your payments by more than 20% or pay off the mortgage early
  • no exit fee and it is transferable if you purchase a new home.

Options include:

  • LTV of 70%
  • 2 year discount special