HSBC Commercial Mortgages Review (2026)

HSBC is one of the UK’s largest commercial property lenders, with a standard Commercial Mortgage designed for businesses buying or refinancing their own trading premises. The first question to answer is straightforward: is the property for your own business’s use, or will it primarily be let to third-party tenants? If it is owner-occupied, HSBC’s mainstream product applies. If repayment relies on third-party rental income, HSBC classifies the facility as Real Estate lending, a separate proposition with a published credit appetite for businesses with trading turnover above £15m. Most SME commercial property investors will need a specialist lender instead.

For owner-occupiers, HSBC applies tight eligibility criteria: clean credit history, strong cash-flow cover, standard property types, and a structured application process. HSBC does not publish a standard commercial rate card: pricing is bespoke, agreed at application. This review examines what HSBC actually publishes, what remains individually negotiated, and whether this lender is the right route for your deal.

HSBC Commercial Mortgages at a Glance

Our Verdict

We rate HSBC a strong option for financially stable businesses seeking an owner-occupier commercial mortgage from a major high-street lender. HSBC does not publish a standard commercial rate card, so you cannot compare on a headline number until you receive an indicative offer, but its bespoke pricing, long terms of up to 30 years, and genuine relationship manager support give it a credible proposition for the right borrower. That’s the trade-off in one line: a high bar, but a serious lender if you clear it. Businesses with any adverse credit, complex ownership structures, or non-standard properties are unlikely to clear HSBC’s underwriting and will be better served by a specialist lender.

BusinessExpert Rating: 4.1 / 5

Best For

• Established limited companies or LLPs with clean credit and strong EBITDA
• Owner-occupiers buying standard commercial premises (office, retail, industrial)
• Businesses refinancing from a higher-rate product and wanting a major high-street lender
• Larger deals above £1 million where relationship manager access matters
• Borrowers who want long fixed-rate certainty, terms up to 30 years

Not Ideal For

• Businesses with CCJs, defaults, or recent adverse credit
• SPV or special-purpose vehicle structures seeking flexibility
• Non-standard property types (petrol stations, nightclubs, heavily converted buildings)
• Borrowers needing a fast decision, direct applications typically take 4–8 weeks longer than broker-packaged routes
• Smaller loans below £25,001 (better suited to HSBC’s standard business loan products)

Key Facts

What Are HSBC Commercial Mortgages?

How HSBC Commercial Mortgages Work

A commercial mortgage from HSBC is a secured loan used to purchase or refinance a commercial or semi-commercial property. The loan is secured against the property itself, meaning HSBC holds a legal charge over it and can repossess and sell the asset if the borrower defaults. Unlike a residential mortgage, there is no automatic regulatory protection under the Mortgage Credit Directive for pure commercial lending, though FCA rules still apply to the conduct of lending.

HSBC assesses commercial mortgage applications primarily on the financial strength of the borrowing entity: its trading history, profitability, debt-service capacity, and the value and quality of the underlying asset. For owner-occupiers, your business’s ability to generate sufficient income to service the debt and satisfy HSBC’s interest cover assessment is the question you have to answer. For investment properties, rent passing and tenant covenant strength take on additional weight.

Loan terms run up to 30 years, giving you the option to spread repayments and keep monthly costs manageable, though longer terms mean more interest paid overall. That’s the catch with a long term: lower monthly cost, more interest in total. Both capital repayment and interest-only structures are available depending on the deal and borrower profile.

Types of Commercial Mortgage Available

HSBC offers two main categories of commercial mortgage:

Owner-occupier commercial mortgages are designed for businesses purchasing or refinancing their own trading premises. A solicitor’s practice buying its office, a manufacturer acquiring a factory, or a healthcare provider purchasing a clinic would typically use this route. The lender assesses the borrowing business directly, focusing on profitability and trading performance.

Commercial property investment mortgages: if the property is primarily let to third-party tenants and repayment relies on rental income, HSBC does not route this through its standard Commercial Mortgage. HSBC classifies property-investment lending as Real Estate lending, a separate proposition. Its live product page states that credit appetite in that sector is for businesses with trading turnover above £15m. SME investors and landlords without significant turnover are unlikely to qualify through HSBC and should look at specialist lenders instead. See our commercial investment mortgages guide for lenders that do serve this market.

HSBC does not publish a formal semi-commercial (mixed-use) product page, but properties that combine commercial and residential elements are assessed on a case-by-case basis through the relationship manager channel.

HSBC Commercial Mortgage Rates and Fees

How HSBC Commercial Mortgage Rates Work

HSBC does not publish a standard commercial mortgage rate card. Unlike residential lending, where lenders advertise specific fixed rates, commercial pricing at HSBC is individually agreed at application.

Variable-rate borrowing is priced as an agreed margin over a reference rate. For most SME facilities, the reference rate is the Bank of England base rate or SONIA. Fixed-rate borrowing is priced based on cost of funds over the fixed term.

The margin applied depends on your deal profile: LTV, trading history, property type, credit quality, and facility size all influence what HSBC offers. You cannot benchmark your rate until you receive an indicative quote. Comparing commercial mortgage pricing across lenders requires getting indicative offers, ideally through a commercial broker who can approach multiple lenders simultaneously. For market context on commercial mortgage pricing, see our commercial mortgage rates guide.

Arrangement Fees and Third-Party Costs

HSBC says an arrangement fee may apply; the amount is individually negotiated and no standard percentage is published. Budget for it as a transaction cost and confirm the amount with your relationship manager or broker when you receive indicative terms. Adding the fee to the loan (rather than paying it upfront) increases the total interest paid over the term.

You also bear two significant third-party costs worth budgeting carefully:

Commercial property valuation: HSBC instructs its own RICS-qualified valuer; the cost is paid by the borrower and typically ranges from £1,000 for a modest property to £10,000 or more for a large or complex asset. This cost is incurred whether or not the mortgage completes.

Legal fees: Borrowers pay their own solicitor fees and, in most commercial transactions, HSBC’s legal costs as well, a convention common across high-street lenders. Budget a minimum of £2,000–£5,000 in legal fees for a straightforward transaction.

Taken together, total transaction costs on a £500,000 HSBC commercial mortgage could reach £15,000–£20,000 before any stamp duty land tax. We’d factor this into your projections before you compare headline rates alone.

Early Repayment Charges

Early repayment charges (ERCs) apply to HSBC fixed-rate commercial mortgages. The structure is broadly as follows:

• A standard annual overpayment allowance is permitted without charge; exceeding this triggers a prepayment fee on the overpaid amount
• Full early settlement during a fixed-rate period attracts a fixed-rate break fee, structured to decline as you approach the end of the fixed period
• On variable rate products, ERCs are lower or absent, but variable pricing means monthly costs fluctuate with the base rate

If you plan to sell your premises or refinance before the end of a fixed term, model the ERC cost explicitly. HSBC’s relationship managers can provide a personalised ERC schedule before you commit.

HSBC Commercial Mortgage Eligibility

Who Can Apply for an HSBC Commercial Mortgage

HSBC accepts applications from the following business structures:

• Sole traders
• Partnerships
• Limited companies
• Limited liability partnerships (LLPs)

All applicants must be UK residents, aged 18 or over, and resident in the UK for at least three years. HSBC does not require you to hold an existing HSBC Business Current Account as a condition of a commercial mortgage, unless the loan structure requires a debenture or a fixed charge over book debts, in which case a linked account is typically required.

International businesses with UK property interests should discuss their position directly with a relationship manager, as additional due diligence applies to non-UK-registered entities.

Financial Requirements and Credit Criteria

We read HSBC’s financial criteria as conservative, reflecting its position as a tier-one bank underwriting from its own balance sheet. Key thresholds include:

Clean credit history: HSBC will not typically lend where the borrower or any director has County Court Judgements (CCJs), bankruptcy orders, individual voluntary arrangements (IVAs), or significant payment defaults on existing facilities. This is a hard filter, not a scoring factor. Clean credit isn’t negotiable here; it’s the gate.

Interest cover ratio (ICR): HSBC does not publish a universal ICR threshold for its standard Commercial Mortgage. Commercial brokers typically cite 125–150% cover as the working benchmark for owner-occupier lending at major high-street banks, but this is market guidance rather than a published HSBC rule. Your deal is assessed individually; if your cash-flow cover is tight, expect more detailed scrutiny or a reduced loan amount.

Trading history: HSBC does not publish a minimum accounts-history requirement. Two to three years of audited accounts is the typical expectation cited by commercial brokers for high-street lender applications, but this is market guidance rather than a published HSBC rule. The application will be assessed on the strength of the trading evidence you provide; newer businesses should discuss their position directly with a commercial broker.

Strong cash flow projections: Even with good historical accounts, HSBC expects forward-looking financial projections demonstrating that the mortgage can be serviced under realistic trading assumptions.

Property Types and LTV Limits

HSBC lends against a range of standard commercial property types: offices, retail units, industrial and manufacturing premises, agricultural land, and healthcare facilities. Specialist sector teams handle the more complex asset classes within these categories.

The maximum LTV is 75% of the lower of purchase price or RICS valuation. In practice, lower LTVs attract more competitive pricing: a deal at 60% LTV will be priced more favourably than one at 75%, because the lender’s security position is stronger. Borrowers seeking 70–75% LTV should expect higher margins and more intensive underwriting. If you can increase your deposit to reach a lower LTV band, it is worth modelling the rate difference with your broker before committing to a loan structure.

Non-standard property types, petrol stations, nightclubs, heavily converted buildings, properties with complex planning histories, or assets with significant environmental concerns, are generally outside HSBC’s standard appetite and will require case-by-case assessment or redirection to a specialist lender.

HSBC Commercial Mortgage Application Process

How to Apply for an HSBC Commercial Mortgage

HSBC operates three application routes depending on loan size and borrower profile:

Relationship manager (direct): The primary route for established HSBC commercial banking clients. Your relationship manager introduces the deal to the underwriting team, coordinates due diligence, and manages the process from initial conversation to offer. This route gives you a single named contact but is available mainly to existing clients or businesses with larger loan requirements.

HSBC Kinetic: HSBC’s digital platform for smaller business banking. For straightforward smaller business banking needs, Kinetic may be a starting point; however, commercial mortgage enquiries are generally handled through the relationship manager channel rather than Kinetic. Verify the current routing with HSBC directly for your specific loan size.

Commercial broker panel: For businesses without an existing HSBC relationship, approaching through an accredited commercial mortgage broker is often the most effective route. Brokers package applications to HSBC’s specification, which can materially reduce decision timelines. This route also allows brokers to compare HSBC’s indicative terms against other lenders simultaneously.

Documents and Checks Required

HSBC’s commercial mortgage due diligence is thorough. Prepare the following before initiating an application:

• Business overview: A written summary of the company’s activities, trading model, key customers and suppliers, and the strategic rationale for the property purchase or refinance
• Director CVs: Professional background and relevant sector experience for all directors or key principals
• 2–3 years of audited accounts: Signed by the company’s accountant; management accounts acceptable for the most recent period if audited accounts are not yet finalised
• Cash flow projections: Forward-looking 12–24 month projections showing mortgage serviceability
• Property details: Title documents, lease information (if applicable), planning consents, and any known structural or environmental issues
• Personal guarantees: HSBC typically requires personal guarantees from directors or significant shareholders; prepare for this to be requested as standard

HSBC will also conduct a formal credit check on the business and its directors, AML (anti-money laundering) checks, and a bank-instructed RICS valuation of the property. When your accountant signs off two clean years of accounts, the file moves through underwriting faster. For businesses without an HSBC relationship, we’d use an accredited broker to package the submission.

Approval and Drawdown Timeline

Realistic timelines for an HSBC commercial mortgage are longer than many borrowers expect. HSBC does not publish SLA timelines for commercial mortgage applications. Based on commercial broker market estimates, the process from initial enquiry to formal offer on a direct application typically runs 8–12 weeks; broker-packaged submissions are generally faster because the application is presented to HSBC’s preferred format from the outset. Treat these as indicative: complex deals and larger loans will take longer.

Key timeline milestones:

1. Weeks 1–2: Initial discussion with relationship manager or broker; indicative terms discussed
2. Weeks 2–4: Formal application submitted; credit paper prepared
3. Weeks 3–6: Underwriting review; valuation instructed and completed
4. Weeks 6–10: Credit committee review (larger loans); formal offer issued
5. Weeks 8–12+: Legal completion and drawdown

We’d steer time-sensitive deals, such as auction purchases with 28-day completion requirements, away from HSBC’s standard process. Bridging finance from a specialist lender, with planned refinancing onto an HSBC term mortgage, is a more pragmatic approach in those circumstances.

HSBC Commercial Mortgage Repayments and Risk

Repayment Terms and Flexibility

HSBC offers commercial mortgage terms of 2–30 years, with fixed-rate periods available up to 10 years. This gives you significant flexibility in structuring monthly costs. A longer term reduces monthly outgoings but increases total interest paid, a trade-off worth modelling carefully at different rate scenarios, particularly if you intend to sell the property before the end of term.

Both capital repayment and interest-only structures are available, though interest-only on commercial mortgages is less common than in residential lending and is typically reserved for investment properties with strong rental coverage or borrowers with a credible capital repayment plan (such as a planned asset disposal). HSBC will want to understand the repayment strategy clearly at application.

HSBC offers a capital repayment holiday of up to 24 months on qualifying facilities, which can help with cash flow in the early stages of a property purchase or development period. This is a genuine differentiator: not all high-street commercial lenders offer a holiday period of this length.

Overpayments are permitted up to an annual threshold without triggering ERCs; this allows businesses to reduce the loan balance and lower future interest costs in profitable years.

Default Risk and What Happens If You Struggle

Commercial mortgages are secured lending, HSBC holds a legal charge over the property and can appoint a receiver or pursue repossession if the borrower defaults. This is a material risk if you use your trading premises as security: a forced sale or receivership can disrupt operations severely. That’s the part you can’t unwind once it starts.

HSBC’s approach to businesses in financial difficulty follows its standard commercial support framework. Early communication with your relationship manager is strongly advised if trading deteriorates: lenders including HSBC generally have more tools available to restructure a loan before formal default than after. Options can include temporary interest-only periods, term extensions, or capital repayment holidays, though none are guaranteed and all depend on the specific circumstances.

Businesses with personal guarantees in place face the additional risk that directors’ personal assets, including residential property, can be called upon if the business is unable to service the debt. Review the personal guarantee terms with independent legal advice before you sign.

HSBC Commercial Mortgage Customer Reviews

What Customers Say

HSBC does not have a dedicated commercial mortgage Trustpilot listing, and its aggregate Trustpilot score is heavily influenced by retail banking complaints, making it an unreliable indicator of commercial lending quality. Borrower feedback compiled by commercial broker aggregator sites is broadly positive for businesses that have successfully completed transactions, though no aggregate rating with a transparent methodology and named dataset was available at the time of this review. We have not included an unsourced composite score.

We read the borrower feedback as clustering around a few themes:

• Competitive rates for well-qualified businesses
• Named relationship manager contact providing continuity through the process
• Willingness to lend on larger, more complex transactions that some rivals avoid
• HSBC’s brand credibility providing comfort to vendors and counterparties in property transactions

Common Complaints

Recurring criticisms centre on process rather than pricing:

• Slow decision timelines: The most frequent complaint across broker forums and review sites. Businesses used to faster fintech decisioning find HSBC’s structured underwriting process frustrating, particularly when competing for properties with multiple buyers
• Strict eligibility declines: A significant proportion of SME applicants, particularly those with any adverse credit, non-standard property, or younger trading history, are declined at early stages without detailed feedback, leaving them uncertain about next steps
• Relationship manager availability: Smaller businesses sometimes report difficulty accessing their relationship manager directly, particularly during busy lending periods
• Documentation burden: The volume of information required upfront, including full director CVs and multi-year audited accounts, can feel disproportionate for smaller loan requests

HSBC Commercial Mortgage Support and Regulation

Relationship Management and Support

HSBC’s commercial mortgage offering is built around its relationship manager model. For borrowers with loans above a certain threshold, broadly those in six figures and above, a named commercial relationship manager acts as the single point of contact throughout origination and, thereafter, for ongoing account management. This is a meaningful differentiator from digital-first lenders, where post-completion support is typically limited to a call centre.

Smaller businesses and those accessing HSBC through the Kinetic platform receive a more standardised service. HSBC Kinetic provides online account management and telephone support but does not offer the same level of dedicated relationship coverage as the main commercial banking channel.

HSBC also maintains specialist sector teams for healthcare, agriculture, manufacturing, and other verticals. For businesses in these sectors, we’d weight access to a lender with genuine sector knowledge, rather than a generalist credit team applying standard matrices: it changes both the outcome and the quality of advice you get during the application.

Regulatory Status and Complaints

HSBC UK Bank plc is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA. Its FCA Firm Reference Number is 765112, which can be verified on the FCA’s Financial Services Register.

It is worth distinguishing between two separate questions. First: is HSBC a regulated firm? Yes, it is authorised and regulated as above. Second: is a particular commercial mortgage a regulated mortgage contract? Under FCA rules, a mortgage secured on property used predominantly for the borrower’s business purposes is generally not a regulated mortgage contract. This means the Mortgage Credit Directive and MCOB protections that apply to residential mortgages do not automatically extend to a commercial premises loan. FCA conduct rules, including fair treatment obligations and complaint handling standards, still apply to how HSBC deals with you, but the full residential consumer-protection framework does not.

Commercial mortgage borrowers are not covered by the Financial Services Compensation Scheme (FSCS), which protects depositors.

If you have a complaint about HSBC commercial mortgage service, the first step is HSBC’s internal complaints process. If unresolved within eight weeks, eligible commercial customers may be able to refer the matter to the Financial Ombudsman Service (FOS), subject to FOS eligibility thresholds for business customers. Check current FOS eligibility rules at the time of any complaint, as the thresholds for business customers differ from those for consumers.

HSBC Commercial Mortgages vs Alternatives

HSBC vs Barclays Commercial Mortgages

We’d name Barclays as HSBC’s closest direct competitor for large commercial mortgage transactions. Both lenders have substantial corporate and real estate banking divisions capable of handling deals from around £100,000 to £50 million and above. Key differences:

• LTV: Barclays caps standard commercial LTV at 70% versus HSBC’s 75%, which gives HSBC a marginal edge for borrowers seeking maximum leverage
• Rate competitiveness: Neither HSBC nor Barclays publishes a standard commercial rate card: both price bespoke at application. For a clean owner-occupier deal, get indicative quotes from both; Barclays remains highly competitive for complex real estate and structured transactions
• Deal complexity: Barclays has strong capabilities for complex structured transactions, sale-and-leaseback, development finance, and mixed-use portfolios, where HSBC’s standard commercial mortgage product may be less flexible
• Process speed: Broadly comparable for direct applications; both benefit significantly from broker packaging

For a straightforward owner-occupier purchase or refinance at lower LTV, we’d give HSBC the edge over Barclays on rate. For complex transactions, assess both carefully on their merits for your specific deal structure.

HSBC vs NatWest Commercial Mortgages

We’d read NatWest as positioning itself more explicitly as an SME-friendly lender, with a focus on owner-occupier commercial mortgages for smaller businesses. Key differences:

• Rate: NatWest publishes indicative commercial rates on its product pages; HSBC does not publish a rate card, so a direct comparison requires getting indicative quotes from both. Broker market estimates suggest HSBC’s bespoke commercial pricing is competitive for well-qualified deals, but the comparison depends on your specific profile
• LTV: NatWest typically caps at 70% LTV; HSBC offers up to 75%
• Early repayment charges: NatWest offers “no early repayment charges” on some variable products, which suits borrowers who want maximum flexibility to overpay or refinance
• SME accessibility: NatWest may be more accessible for smaller businesses with shorter trading histories or less polished application packs; HSBC’s underwriting standards are generally viewed as more demanding

If rate is the primary factor and you meet HSBC’s eligibility criteria, we think HSBC wins on price. If flexibility or SME-friendliness matters more, NatWest is worth a serious comparison.

HSBC vs Specialist Commercial Mortgage Lenders

Specialist lenders, including Interbay, Shawbrook Bank, and others, serve a fundamentally different market segment to HSBC. Understanding where each type of lender fits is essential before choosing an application route:

• Credit appetite: Specialists accept adverse credit, recent CCJs, and complex borrower structures (SPVs, offshore holding companies) that HSBC will decline outright. If your credit profile is imperfect, a specialist is not a fallback, it is the right primary option
• Property types: Specialists routinely lend on non-standard property, pubs, petrol stations, HMOs, care homes, that falls outside HSBC’s standard risk appetite
• Rate premium: Specialist rates typically run 1–2 percentage points above HSBC’s headline rates, reflecting the higher risk absorbed. For a qualifying business, HSBC is materially cheaper
• Speed: Specialists often have faster decisioning and more flexible processes, making them better suited to time-constrained transactions

The right choice depends entirely on your borrowing profile. For clean, standard deals, we think HSBC’s rates justify the process. For anything outside those parameters, a specialist lender isn’t a consolation prize; it’s the appropriate tool.

Final Verdict: Are HSBC Commercial Mortgages Worth Considering?

HSBC is a serious commercial mortgage lender for the right borrower. Its long terms (2–30 years), LTV headroom of up to 75%, fixed periods of up to 10 years, the option of a capital repayment holiday of up to 24 months, and genuine relationship manager support for larger deals give it a strong proposition for established, financially stable businesses buying their own premises. It does not publish a standard rate card, so you will not know your pricing until you receive an indicative offer: use a commercial broker to get comparable quotes from HSBC and at least one other lender simultaneously.

The critical caveat is eligibility. HSBC’s underwriting standards are demanding: clean credit is non-negotiable, the interest cover requirements are strict, and the property types accepted are limited to the mainstream. If you qualify, you’ll get competitive terms and a credible institutional lender. If you don’t, and many won’t, you need to know that before you invest time in an application that will be declined.

The process is also genuinely slow for direct applicants. Businesses with time-sensitive completions should use a commercial broker to package the application efficiently, or consider whether a different lender with faster decisioning better matches the transaction timeline.

Bottom line: HSBC commercial mortgages are worth considering if you have strong financials, clean credit, a standard owner-occupied property, and the patience for a structured underwriting process. Get a broker involved early, compare indicative terms from at least two other lenders, and make sure you understand the full cost, including arrangement fee (individually negotiated), valuation, legal costs, and early repayment charge exposure, before you commit.

HSBC Go Greener SME Reward

HSBC offers the Go Greener SME Reward on qualifying commercial facilities: a 1% cashback payment for eligible businesses that use borrowing for green purposes.

To qualify, all of the following must apply:

• The borrowing business is a UK SME with group turnover below £25m
• The facility is between £25,001 and £300,000
• At least 90% of the facility proceeds are used for eligible green activity (as defined by HSBC’s green finance criteria)
• The borrower meets HSBC’s standard eligibility and credit criteria

For a business borrowing £250,000 for an eligible purpose, such as energy efficiency improvements to its premises, the 1% cashback amounts to £2,500. It is a meaningful incentive if your use of funds qualifies, and worth asking your relationship manager or broker about before you finalise the facility structure. Eligibility and terms are confirmed on HSBC’s Go Greener SME Reward page and subject to change.

Frequently Asked Questions

• What is the minimum loan size for an HSBC commercial mortgage?

  HSBC commercial mortgages start from £25,001. Borrowing requirements below this threshold are better suited to HSBC’s standard unsecured business loan products. At the upper end, HSBC comfortably lends up to £25 million for qualifying commercial borrowers, and larger facilities are available for corporate clients through dedicated real estate and structured finance teams.

• What LTV does HSBC offer on commercial mortgages?

  HSBC offers a maximum LTV of 75% on commercial mortgages, based on the lower of purchase price or RICS valuation. In practice, lower LTVs attract more competitive pricing: HSBC does not publish a rate card, but a deal at 60% LTV will typically be priced more favourably than one at 75%. Increasing your deposit to reach a lower LTV band is worth modelling before committing to a loan structure.

• Do I need an HSBC business account for a commercial mortgage?

  No. An existing HSBC Business Current Account is not a mandatory condition for a commercial mortgage application. The exception applies where the loan structure requires a debenture over the business or a fixed charge over book debts, in those cases, HSBC will typically require a linked current account. For standard owner-occupier and investment commercial mortgages, you can apply without being an existing HSBC business banking customer, including through the commercial broker panel.

• How long does HSBC commercial mortgage approval take?

  HSBC does not publish a formal SLA for commercial mortgage applications. Based on commercial broker market estimates, a direct application typically takes 8–12 weeks from initial enquiry to formal mortgage offer; broker-packaged applications can be faster because the submission is presented in HSBC’s preferred format from the outset. Legal completion and drawdown adds further time. Treat these as indicative guides: complex deals and larger loans will take longer. If your transaction has a fixed deadline, raise the timeline explicitly at your first conversation with a relationship manager or broker, and consider whether bridging finance is needed to secure the property while the term mortgage is processed.

• Is HSBC commercial mortgage lending regulated by the FCA?

  HSBC UK Bank plc is authorised by the Prudential Regulation Authority (PRA) and regulated by the FCA and PRA (FRN: 765112). That makes HSBC a regulated firm. However, a commercial mortgage secured on property used predominantly for the borrower’s business is generally not a regulated mortgage contract under FCA rules: the full Mortgage Credit Directive and MCOB protections that apply to residential borrowers do not automatically extend to commercial premises lending. FCA conduct rules on fair treatment and complaint handling still apply to HSBC’s dealings with commercial customers. Commercial mortgage borrowers are not covered by the FSCS, which protects depositors.

• Does HSBC publish commercial mortgage rates?

  No. HSBC does not publish a standard commercial rate card. Variable borrowing is priced as an agreed margin over a reference rate (typically Bank Rate or SONIA); fixed borrowing is priced based on cost of funds over the fixed period. Your rate is individually agreed at application based on your deal, credit profile, LTV, and property. To understand what HSBC would offer, request an indicative quote: a commercial broker can approach HSBC and other lenders simultaneously for comparison.

• What arrangement fee does HSBC charge on a commercial mortgage?

  HSBC says an arrangement fee may apply on its commercial mortgages and that the amount is individually negotiated: no standard percentage is published. Budget for it as a transaction cost and ask your relationship manager or broker to confirm the specific fee when you receive indicative terms.

• Does HSBC offer commercial mortgages for investment property?

  HSBC’s standard Commercial Mortgage is designed for owner-occupied business premises. If you are buying a property primarily to let to third-party tenants, relying on rental income for repayment rather than your own business’s trading, HSBC classifies this as Real Estate lending. HSBC’s live product page states its credit appetite in that sector is for businesses with trading turnover above £15m. Most SME commercial property investors will need to approach a specialist lender. See our commercial investment mortgages guide for lenders that actively serve this market.

• What is the HSBC Go Greener SME Reward?

  The HSBC Go Greener SME Reward offers a 1% cashback incentive on qualifying commercial facilities. To be eligible, the borrowing business must be a UK SME with group turnover below £25m; the facility must be between £25,001 and £300,000; and at least 90% of the proceeds must be used for eligible green activity as defined by HSBC’s green finance criteria. Subject to eligibility criteria and HSBC’s standard terms and conditions.

How We Reviewed HSBC Commercial Mortgages