The lender will only offer mortgages in sterling but will allow customers to support the application with foreign currency and properties.
Tracie Pearce, UK head of mortgages, said: “HSBC is a global bank with a global proposition, providing services for international customers is a central tenet of our brand.”
HSBC will use a KFI (Key Facts Illustration) Plus initially rather than adopting the European Standardisation Information Sheet, which all lenders must eventually use to comply with the directive. It will introduce the prescribed seven-day right of reflection period rather than opting for a longer period. Barclays revealed it will use a 10-day period to allow for postage times.
Pearce said: “To minimise any negative impacts on customers, the initial transition period and management of pipeline applications will be challenging. Clear guidelines will be provided to brokers to advise how to manage before and after the MCD effective date. Borrowers will be advised that there is some additional information HSBC must collect in the application process in readiness for the MCD change.”
The lender plans to reveal its policies on accepted countries of residence and acceptable currencies of income and the assets which can be held, at a later date.
