HSBC has introduced significant changes to its Premier current account, which offers customers more favourable mortgage rates
New criteria have been introduced, which make it harder for potential homebuyers to qualify for the accounts – and the preferential mortgages.
The banking giant, which serves over 16 million UK customers, has raised the income and savings thresholds required to open the Premier account.
Previously, customers could qualify for an HSBC Premier account by earning £75,000 annually or holding £50,000 in savings or investments with the bank. However, since September 4, these thresholds have increased.
Now, customers must earn at least £100,000 annually or hold £100,000 in savings or investments to qualify. This adjustment effectively doubles the savings requirement for those not meeting the income criteria.
Customers who already hold an HSBC Premier current account won’t get downgraded, regardless of whether they meet the new thresholds.
Other changes to the Premier current account include the introduction of a new 24-hour-a-day customer service. New financial planning tools, as well as travel, international and lifestyle benefits, are also being added.
The HSBC Premier account offers several perks, including access to preferential mortgage rates. For example, a first-time buyer seeking a 60 percent loan-to-value mortgage can secure a five-year fixed rate of 4.12 percent with a Premier account. In contrast, the same buyer without a Premier account would receive a rate of 4.29 percent, a 0.17 percent difference.
Additional benefits for Premier account holders include 24/7 customer service, financial planning tools, and lifestyle perks such as travel and international benefits. Customers with existing Premier accounts will not be downgraded, even if they do not meet the new eligibility criteria.
Other major UK banks also offer premier banking products with varying eligibility requirements. Barclays requires customers to earn at least £75,000 annually or hold £100,000 in savings or investments. NatWest’s criteria include earning £100,000 annually, holding £100,000 in savings or investments, or having a mortgage exceeding £500,000.
While premier accounts often provide access to discounted mortgage rates, these are not always the most competitive rates on the market. Customers are encouraged to compare offers to ensure they secure the best deal.
The move is part of a broader strategy unveiled by Jose Carvalho, head of wealth and personal banking at HSBC UK, on November 20. HSBC’s retail division aims to position the Premier account for customers with investable assets between £100,000 and £2 million.
