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Help & Guidance

Our mortgages explained

Find out more information about your choices when it comes to repaying your mortgage.

Overview of payment options

Principal and Interest

  • HSBC Bermuda offers only principal and interest repayment for Residential Mortgages. Each monthly payment pays towards the underlying principal, as well as the interest applicable on the loan. This repayment option ensures your mortgage is fully paid off at the end of the mortgage term assuming you meet all the required monthly payments.

Types of Mortgages

Variable Rate Mortgage

  • A variable rate mortgage will fluctuate with the HSBC Bermuda Base Rate throughout the mortgage term. While your regular payment will remain constant, your interest rate may change based on market conditions. This impacts the amount of principal you pay off each month. When rates on variable interest rate mortgages decrease, more of your regular payment is applied to your principal. Additionally if rates increase, more of your payment will go toward the interest.  A variable rate mortgage typically offers more flexible terms than a fixed rate mortgage.

5 Year Fixed Rate Mortgage

  • One of the most popular types of mortgages is the fixed-rate mortgage. Fixed rate refers to the fact that the interest rate remains the same over the term of the mortgage. This is in contrast to a variable rate mortgage in which the interest rate may change. If you have a set budget and want to have a predictable payment from month to month, a fixed rate mortgage might work well for you.

Understanding our fees

A range of fees are payable when you take out an HSBC mortgage. Here the fees are explained and itemized.

Click on the name of the fee to view details.

Arrangement fee

  • The fee charged by a lender to cover the administration involved with arranging the loan.

Appraisal fee

  • This report is solely for the purpose of arriving at a current market value to enable the lender to determine the amount of the advance. It should not be relied on by the customer to assess the suitability or sale-ability of the property.

Permitted Law Firms

  • Appleby Bermuda Limited
  • BeesMont Limited
  • Conyers Dill & Pearman Limited
  • MJM Limited
  • Marshall Diel & Myers Limited

Legal fees

  • There are the fees payable to your lawyer for the conveyancing of the property.

Early repayment

  • As long as 3 months' notice is given there is no penalty for early repayment. However if no notice is given, the Bank has the right to charge a penalty of up to 3 months of interest on the outstanding balance.

Stamp duty

  • This fee represents a charge on legal documents as specified under the various Heads of Charge in the Stamp Duties Act 1976.

Guides and checklists

We offer a range of guides and checklists to help you plan for a wide range of house buying, selling, and moving circumstances.

Finding a property guide

Register with real estate agencies and also use the internet to search for properties. Many sites are now specifically designed for fast property searches, where you can enter your price range, number of rooms, and other specifications to narrow down your search.

Viewing properties

  • View prospective properties as quickly as possible, so you don't lose out. If you are buying with someone else, spread the responsibilities. Remember, the more properties you view, the more likely you are to find your dream home. Be ruthless in eliminating all but the strongest property candidates that make your list.

Assessing your property

  • All lenders require a basic valuation; we advise that you consider an independent survey carried out to check that the property is structurally sound and to pick up any problems. And if you're thinking of renovating, visit the property with tradesmen to find out exactly what challenges (and costs) you could be taking on.

Making an offer

  • It is important that you offer is "subject to contract and to appraisal". This means a survey must be satisfactorily completed and signed contracts must be exchanged before the offer is legally binding. Your offer should also be subject to the property being taken off the market immediately. A 'sold' board outside of the house is a good way to dissuade other offers – and ensure that any web adverts for the property are removed promptly.

Printable Mortgage Appointment Information

Buying to renovate guide

Check how long the property has been on the market. Make sure you're fully aware of the task at hand if the property requires upgrades or renovations. In an older property, you should be prepared for more unexpected costs - which could add onto your overall costs.

Ask the experts
Electricians, roofers, timber and damp specialists should charge very little for estimates and could be more beneficial to you than a surveyor in the early stages.

The costs of renovation projects can end up exceeding your original estimate. So when you budget for these projects, most people recommend that you build in a contingency fund of at least 15% to account for unexpected costs.

Managing the project
You can either manage your own project, or employ an independent project manager. They will liaise with the builder to ensure that work is carried out to a specification. Often their experience avoids unnecessary costs and saves you from having to be on site all the time. But if you decide to manage the project yourself, make sure you:

  • Get all quotes in advance, so you can calculate your expenditure
  • Never expect the scheduled timescales - things probably won't go as planned
  • Seek as much advice as possible from anyone with relevant experience
  • Are prepared to live in a building site (or caravan) during renovations

Employing tradesmen
Decide exactly what you want before you ask for any quotations and write a clear specification with full details of the work you need carried out. Good communication and a professional relationship with your builder are crucial if you want the project to run smoothly.

Selling a property guide

Your property may be repossessed if you do not keep up repayments on your mortgage.

Issued by HSBC Bank Bermuda Limited, of 37 Front Street, Hamilton Bermuda, which is licensed to conduct Banking Business by the Bermuda Monetary Authority. The Site is primarily intended for those who access it from within Bermuda. Because of this, we cannot guarantee that the Site or the information thereon complies with law or regulation of other countries, or is appropriate for use, in other places. You are wholly responsible for use of the Site by any person using your computer and you must ensure that any such person complies with these Terms. The information provided on this Site is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would be contrary to law or regulation. This Site should not be considered as communicating any invitation or inducement to engage in banking of investment activity or any offer to buy or sell any securities or other instruments outside Bermuda.