In times of financial or loan repayment difficulties due to unforeseen hardship, how can HSBC help?
We recognise that from time to time our customer’s financial situation may change due to unforeseen circumstances, such as illness, injury, job loss, relationship break up, or other reasonable cause.
If you think you’ll be unable to make your repayments to us in the near future, or have already missed a payment, please contact us as soon as possible. Contacting us early means we can discuss your specific circumstances and develop a plan to assist you.
The type of assistance we may be able to provide may vary depending on your individual circumstances and your type of home loan with the options available being:
- Reducing your loan repayments, through an extension of your loan term, or conversion of your loan to interest only
- A postponement of loan repayments during an agreed period. (Should you decide to apply for this option, the loan balance outstanding and future loan repayments will increase due to the interest accrued during the repayment postponement period being added to your loan(s) on expiry of the hardship period) or
- Both of the above
What Information will I need to provide?
As part of our assessment process we will need you to complete a Financial Assistance Application form. To receive a copy of the Financial Assistance Application form please contact your HSBC Relationship Manager. This will help us to understand:
- The reason for the request and how you want HSBC to assist you.
- How long do you need assistance - based on when and how will you be in a position to continue normal repayments.
- Whether you have any supporting information to support your request e.g. a medical certificate, redundancy letter etc.
Important things to remember?
Depending on your circumstances, you may wish to seek independent legal advice, advice from organisations that provide information about consumer rights, or advice from free and independent budgeting services (see links below).
If HSBC approves your request, we will send you a letter confirming the variation of terms to your loan agreement. The repayment postponement will be put in place only after all borrowers/guarantors have signed the variation letter and returned the original to HSBC.
The risk of not paying your loan or taking steps to address the issue, could result in your debt to HSBC increasing due to legal costs incurred, your credit record being affected, and worst case, the repossession or sale of your property.
How long will the process take?
Once a signed application and supporting information has been received, we will aim to advise a decision and process your request within 3-5 business days.
Does HSBC have to accept my request?
In certain circumstances HSBC may choose not to approve your request, for example where:
- The changes proposed aren’t reasonable
- Its unlikely you’ll be able to pay off your debts in the longer term
- The hardship was reasonably foreseeable or anticipated before taking out your loan
- Ineligibility – because you have already defaulted or are in excess of a credit limit
- You have the ability to meet your repayments through other resources (e.g. cash, shares or existing credit limits)
HSBC will give genuine consideration to any request. Any debt recovery activity will be put on hold while your request is being considered and you and your property will be treated reasonably in an open and ethical manner.
In the event that HSBC is unable to approve your hardship request then you are entitled to ask for this decision to be reviewed, initially through HSBC’s internal complaints process and if unresolved, through the Banking Ombudsman.
Who do I contact?
As soon as you become aware you may experience financial difficulties then contact us so we can discuss your situation and see what option may best suit your needs.
- Email your Relationship Manager
- Send us a secure message as per the steps below:
- Log on to Internet Banking
- Click on “Secure Message” in the Quick Links menu then click on “Send us a message”
- Select “Home Loan enquiry/instruction” as subject line
- Input your request in the message body then click on “Send”
- By Phone