HSBC

HSBC is one of the world's largest banking and financial services organisations, with a presence in over 60 countries and territories and a UK commercial banking operation that is among the most substantial in the market. The bank's commercial property lending benefits from this global scale, offering capabilities that are particularly distinctive for international borrowers, cross-border transactions, and larger deals that require the backing of a truly global balance sheet.

Founded in 1865 in Hong Kong, HSBC has a long and distinguished history in international banking. The bank's UK operations are substantial, with HSBC UK serving millions of personal and business customers through a nationwide branch network and comprehensive digital banking platform. For commercial property lending, HSBC's UK operations are complemented by its global real estate team, which manages property lending relationships across the bank's international network. This global reach is particularly valuable for borrowers who have international business interests or who are investing in UK commercial property from overseas.

HSBC's commercial mortgage proposition in the UK provides finance for the acquisition, refinance, and development of commercial properties across all main asset classes. The bank lends to UK-based businesses and investors as well as to international borrowers acquiring UK commercial property, making it one of the few high street banks with genuine expertise in cross-border property lending. For UK-based businesses, HSBC offers a competitive owner-occupied mortgage proposition assessed primarily on business performance and property quality. For international borrowers, the bank can navigate the additional complexities of overseas income verification, foreign currency considerations, and cross-border legal structures.

Loan sizes with HSBC typically range from £100,000 for smaller business premises through to substantial institutional-grade facilities. The bank's sweet spot for commercial property lending is generally £500,000 to £30 million, where its competitive pricing and efficient processing deliver the strongest value proposition. For larger transactions, HSBC's Global Real Estate team can structure bespoke facilities running to hundreds of millions of pounds, drawing on the bank's global balance sheet and syndication capabilities.

Loan-to-value ratios of up to 65% to 70% are standard for HSBC commercial mortgages, with the bank generally being more conservative on leverage than some challenger bank competitors. This conservative approach to gearing reflects HSBC's institutional risk management philosophy and is reflected in the bank's competitive pricing — borrowers who accept lower leverage typically benefit from better rates. Terms of up to 25 years are available, with fixed-rate periods of two to ten years and variable rates linked to Base Rate or SONIA.

HSBC's interest rates for commercial mortgages are competitive, particularly for larger transactions involving quality properties and strong borrowers. Owner-occupied rates start from around 2.5% to 3.5% above Base Rate for strong applications, while investment property rates vary depending on property quality, tenant covenant, and loan size. For larger transactions processed through the bank's Commercial Real Estate team, pricing is individually negotiated and can be among the most competitive in the market where the transaction quality warrants it.

The bank's approach to commercial property assessment reflects its institutional heritage. HSBC's credit assessment process is thorough and considers multiple dimensions of risk, including borrower financial strength, business performance, property quality and location, tenant covenant strength, lease terms, and market conditions. The bank's relationship managers work closely with specialist property finance teams to structure facilities that balance competitive pricing with appropriate risk management. This collaborative approach between relationship management and specialist property expertise delivers well-structured facilities that serve borrowers' needs while meeting the bank's risk requirements.

HSBC has particular strengths in several areas that distinguish it from domestic competitors. First, the bank's expertise in lending to international borrowers acquiring UK commercial property is unmatched among UK high street banks. HSBC can verify overseas income, assess foreign businesses, and navigate the legal and regulatory complexities of cross-border lending in ways that purely domestic lenders cannot. This makes HSBC the natural choice for overseas investors, expatriates, and businesses with international operations that are purchasing UK commercial property.

Second, HSBC's global treasury and markets operation provides sophisticated interest rate and currency hedging products that are particularly relevant for larger commercial property transactions. Borrowers can access interest rate swaps, caps, floors, and structured hedging products to manage their exposure, as well as currency hedging for international borrowers with income or costs in foreign currencies. This treasury capability is often a decisive factor for larger, more sophisticated borrowers who want to actively manage the financial risks associated with their property holdings.

Third, HSBC has invested heavily in sustainable finance and environmental, social, and governance considerations within its commercial property lending. The bank offers specific green and sustainability-linked lending products for commercial properties that meet defined environmental standards, providing both lower rates and a structured framework for monitoring and improving the environmental performance of commercial property portfolios. For investors and businesses that are focused on sustainability and ESG compliance, HSBC's green lending proposition is among the most developed in the UK market.

The application process for HSBC commercial mortgages is comprehensive and reflects the bank's institutional governance framework. Documentation requirements include detailed business accounts, management accounts, business plans, personal financial statements, property details, and — for investment properties — comprehensive lease and tenant information. For international borrowers, additional documentation is required including evidence of overseas income, corporate structure details, and in some cases, legal opinions on the enforceability of security in relevant jurisdictions. Processing times typically range from eight to sixteen weeks for standard UK transactions, with international or complex cases requiring additional time.

HSBC's regional commercial banking teams provide relationship management for SME and mid-market clients across the UK, while the Commercial Real Estate team handles larger institutional relationships and more complex property transactions. Both teams benefit from the bank's substantial infrastructure, including experienced legal, compliance, and property specialist functions that support the lending process.

For Commercial Mortgage Broker clients, HSBC is particularly recommended for larger commercial property transactions, international borrowers, and deals where sophisticated treasury products or green lending features are relevant. The bank's combination of global reach, competitive pricing for quality transactions, and advanced treasury capabilities makes it an ideal choice for borrowers who operate at a scale where HSBC's institutional strengths deliver genuine value. Our broker relationships with HSBC's commercial banking teams enable us to present applications effectively and access the most competitive terms available for each transaction.