From multi-currency lending to nine-figure single-asset loans, private banks approach credit very differently from the retail market and nowhere is this more evident than in the way HSBC Private Bank structures lending for its most sophisticated clients. ‘Retail mortgages are largely product-led,’ says Gary Edwards, Head of Credit Advisory at HSBC Private Bank. ‘You select something off the shelf, input your salary and employment details, and a credit score determines the outcome. In private banking, we start from a completely different place.’
Judgement, not algorithms
Where retail banks rely on standardised credit models, HSBC Private Bank takes a judgement-based approach to lending, designed for clients whose wealth and income do not fit conventional profiles.
‘Our clients are often entrepreneurs, investors, or members of multi-generational families,’ Edwards explains. ‘They may have significant wealth tied up in businesses, investment portfolios, or trusts, with income arriving irregularly or in the form of dividends. That doesn’t work well in a traditional credit-scoring approach.’
Instead, Edwards’ team analyses a client’s full balance sheet: net worth, liquidity, asset composition, cash flows, and long-term objectives. ‘We build a holistic credit assessment rather than relying on a formula,’ he says. ‘That allows us to support complex borrowing – from large interest-only loans against multiple properties, to single-property mortgages in excess of $100 million – where the risk is well understood and appropriately structured.’
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Why ultra-wealthy clients borrow
For many ultra-high net worth individuals, the question is not whether they can buy a property outright, but should they.
‘Paying cash is often the least efficient option,’ says Edwards. ‘An entrepreneur might have substantial capital invested in their business, which is generating strong returns. Extracting that capital to buy property can be disruptive.’
Strategic borrowing allows clients to retain capital, diversify assets and align debt with broader wealth and tax planning. ‘Debt can complement wealth when it’s structured properly,’ Edwards says. ‘You may borrow against one asset class while investing elsewhere, creating diversification rather than concentration.’
This approach becomes increasingly important as tax considerations, interest rates and property valuations evolve. ‘We work closely with clients and their advisers to understand how debt fits into the bigger picture, not just the purchase itself.’
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Currency, assets and flexibility
One area of growing interest is multi-currency lending. ‘If a dollar-based client is buying property in London, borrowing in sterling isn’t automatically the right answer,’ Edwards explains. ‘In some cases, lending in US dollars or even Swiss francs may better reflect income streams or asset bases.’
HSBC’s global balance sheet allows it to lend in multiple currencies and against a wide range of asset classes – not just residential property. ‘Sometimes a client asks for a mortgage when another structure would be more effective,’ Edwards says. ‘That could mean financing a yacht, an aircraft, or lending against an art collection or investment portfolio.’
The objective, he stresses, is always to align the loan with the client’s wider financial position. ‘We look at what assets they hold, where their income is generated, and how different structures affect risk, liquidity, and flexibility.’
Transparency as a differentiator
In a market where headline rates can mask future costs, transparency is a core part of HSBC Private Bank’s lending philosophy.
‘We’re very clear with clients about what we can and can’t do,’ says Edwards. ‘Our mortgage pricing is transparent, without teaser rates that later revert to punitive standard variable rates after a limited period of time.’
That transparency extends to suitability. ‘Sometimes another part of HSBC – such as Premier – is better placed to meet a client’s needs. Being honest about that builds trust.’
Edwards also emphasises the importance of full disclosure from clients. ‘The more we understand – about assets, liabilities, business interests – the better we can structure lending that genuinely works over the long term.’
Strength of balance sheet – and relationships
HSBC’s scale and balance sheet strength play a critical role in supporting complex lending, particularly in London’s super-prime property market, where individual loan features are often needed.
‘Our balance sheet allows us to support transactions that some lenders may find challenging,’ Edwards notes. ‘But strength alone isn’t enough. What matters is disciplined underwriting and delivering exactly what we say we will.’
That reliability is particularly important when working with brokers. ‘Brokers are a vital part of the market,’ he says. ‘We value those relationships and pride ourselves on not over-promising. Protecting our reputation – and theirs – is essential.’
A human, holistic approach
While the lending structures may be complex, Edwards is clear that the experience should not be.
‘Our wealth centres in London and Leeds provide discreet, private environments where clients can have meaningful conversations about their finances,’ he says. ‘These are personal decisions, often involving family, legacy and long-term planning.’
Ultimately, HSBC Private Bank positions credit as part of a broader, universal banking proposition. ‘Clients may come to us for a mortgage, but quickly see the value of a one-stop shop — from investments and wealth planning to specialist financing for property, yachts, or aircraft,’ Edwards says.
The guiding principle remains simple: ‘We structure loans we know will work. That protects the client, the broker, and the bank – and that’s how long-term relationships are built.’
Eligibility for HSBC Private Bank is subject to financial and other qualifying criteria.
Find out more at privatebanking.hsbc.com.
