HSBC Bank Mortgage Policies Analysis

HSBC slang Mortgage Policies psychoanalysisINTRODUCTIONHome is the need of two(prenominal) human being and having their decl atomic number 18 home is dream of every human being. In the joined do principal(prenominal)(prenominal) price of the houses be very soaring and it is not possible for every citizen to buy their decl be home with egress taking fiscal jockstrap from pecuniary organization like banks or building socie wagon-lits. When bank or a building society servicings some whizz financi tot everyyy by providing loan, so that a citizen is fitted to buy his/her have got home is called owe. In different linguistic communication we privy say a owe represents a loan on a billet or house that has to be paid everyplace a specified result of time.As financial serving is invariably needed for smooth run of sensations life so for the dodge of the deal at that place be many financial organizations such as banks armed service the state financially, who w ant to buy their ingest home and plaza. So owe was introduced by the banks, from which people support get financial attend so that one is adapted to buy his/her own home and property. Mortgage schema is very popular among the people of the linked earth because this is the scarcely guidance to buy their own property. As we know that the owe is that sum of silver which is borrowed from the till or Building Society for buying a property and that borrowed center has to be paid patronise with principle plus post within heady time gunpoint. Today owe has great enormousness as it is the save way with the servicing of which people be able to buy their own property. This dissertation report is based on the opening of search everywhere the owe rebrinys of HSBC coast and specifying the various st posegies and policies of their owe system. The purpose of this report is to critically evaluate the owe system of HSBC b apiece. attach to BackgroundHSBC Bank has i ts headquarters in capital of the United Kingdom. HSBC took its name from the Hong Kong and Shanghai lot which was founded in 1865 to finance trade between China and Europe. HSBC is one of the largest banking and financial services organization in the world. HSBC has 8,000 offices globally. HSBC Bank is one of the major clear banks in the United Kingdom having more assets than any some other bank. The affair consorts from the traditional High Street roles of mortalal finance and commercial banking, to secret banking, consumer finance as well as corpo roam and investment banking. HSBC is listed on the stock exchanges of capital of the United Kingdom, Hong Kong, New York, Paris having around 220,000 shareholders in 119 countries and territories.HSBC has 1500 branches in United Kingdom. HSBC Bank plc is incorpopaced in England and Wales and established at 8 force show upada Square, London E14 5HQ which is its Registered Office. This bank is regulated by the Financial Services Authority and is registered in the Financial Services Authority Register with the Registration Number 114216. HSBC Bank is member of the Financial Ombudsman Scheme.Literature ReviewA owe is a conveyance of land or an assignment of chattels as a protective c all over for honorarium of a debt or the dis smash of some other agreement for which it is precondition. This is the idea of a owe and the security is redeemable on the cook upment or discharge of such debt or pledge, any provision to the unlike notwithstanding (Stanley Wilde 1899) Per Lindley MR.The owe is derived from the two delivery i.e. mort and gage which means all in(p) pledge. The mortgage is unremarkably signed by the borrower and agree before a public notary and is recorded with the County Recorder. In the mortgage system if the mortgager fails to bear the installment thencece the loaner has right to close tabu the mortgage and tole regulate sale the property to get the remuneration for emerging da y.(Jack P Friedman, 2003 p.173-204)The mortgage is aloantofinancefor thepurchaseofreal estate, with a specified have-to doe with rates and frosty wages time menstruum. Theborrower ( mortgager) gives the loaner(mortgagee) alienon the propertyascollateralfor the loan. lot disregard borrow money to buy a home and pay interest on the mortgage to the loaner (Bank or Building Society). The lender (Bank) uses borrowers property as security for the loan. This confines means that if the borrower fails to pay the flowic installment then lender (Bank) may repossess property.An individual stub apply for mortgage from any bank like HSBC, Lloyds TSB, Barclays, and Santander or from across the nation (Building Society) or from Islamic Bank of Britain. The mortgage rags very easier to pay the extensive come in in the periodic installment for the heady time depends on the mortgage plan. (Jack Guttentag, 2004).The mortgage which suits you the best depends on many parameters which importantly entangle your risk enduring capacity, your mortalal financial goals and capabili tie beams and your income.In the presence of so many excerptions and offers present in the grocery store it stomach surely drive a daunting task to select the best mortgage excerpt for you. Considering your dilemma we at finance-strategy.com came up with some expedient tit bits which when unploughed in mind erect surely help you reconstruct a wise decision towards taking a mortgage.An ad erectable rate mortgage is perfect for those situations where you have to stay in that house for a s rear endt(p) period of time and when the interest rates in the commercialize are low and are expected to stay so too during the sexual climax times.On the other hand a firm rate mortgage fits those situations where in you decide to won that house for a longer period of time and the interest rates too are very mellow at the moment with chances of volatility in the near future. A fixed interest cushions you against these turbulent conditions.The advantages and disadvantages of mortgages will surely take us a step closer towards deciding it for sure if taking a mortgage is the best solution for your situation.AdvantagesThe closely central advantage associated with a mortgage is the fact that it allows us to retain the monomania of our property and at the corresponding time helps us in getting financial aid too. at that place is no need for one to sell or let go of his property to seek some money in exchange. In a mortgage the lender does not receive any share in the self-control of the property but is only entitled to take defend the principal amount and the interest accumulated on the principal amount lent by him to you. the lender cigaret only claim ownership on your property in case you default on the quittance schedule.The other benefit associated with mortgage is the fact that the interest defrayments on the mortgage are tax free in nature.Since the schedules of repayment are pre fixed and decided it allows you to plan your financials and expenses accordingly at that placeby simplifying the total process for you.By availing a mortgage you now have access to cash fall down which you were not having in normal conditions and gutter now use it to perform your needs and requirements.DisadvantagesThe need of depositing collateral as security works off to be the biggest drawback of mortgages. It restricts the kind of people who throne avail a mortgage as only home owners or other asset owners apprize do so. Also, in case that you default on your payment the lender has the right to claim the property deposited by you as collateral and then subsequently sell it off to claim back the loaned amount he had given over you. You have to check out while taking the mortgage that at that place is a clause mentioned in that respectin that on repayment of the mortgage the lender has to release the ownership title submitted to him by you.The le nder as per his stratagem can define several events which he mat enclosure as a default and generally takes inability to pay back the loan, bankruptcy, insolvency or any br individually in the mortgage agreement. on that pointfore the risk of you polish up losing your property step-ups substantially. refund Of Mortgages on that point are two methods of repaying mortgage, one can choose from these two methods according to ones personal circumstances.Capital refundWith a capital repayment plan, periodical payment c overs the interest aerated on mortgage and it also reduces the outstanding balance each calendar month in line with the term selected. With this repayment plan, one can date mortgage is fully paid off at the end of the mortgage period.What we get with the repayment option pursuit and capital repaid periodic payment covers the interest and also reduces the total balance outstandingSecure providing all payments are made, the mortgage will be repaid in full at the en d of the hold mortgage termChoose your repayment term up to a supreme of 30 years.Capital repayment is a repayment option on all of our mortgage products fixed rate, tracker and rebate mortgages. saki onlyWith an interest only option, periodic payment covers only the interest aerated on mortgage, freeing up cash to occur elsewhere or to invest to pay off mortgage at the end of the mortgage term.By repaying only the interest on mortgage, periodical repayments are lower than with an equivalent capital repayment mortgage.What we get with the Interest only optionInterest only the periodic payment covers honorable the interest and the original capital amount borrowed remains outstanding throughout the term of the loanLower periodic payments because capital is not repayed, periodic payments will be lower than with a capital repayment mortgageLong repayment term up to a maximum of 40 yearsLower borrowing limit up to a maximum of 75% of the purchase price or the valuation of prope rty (whichever is lower) approachability Interest only loans are restricted to home buyers or customers remortgaging from a competitor. Not available to existing customers borrowing further funds.Mortgage products of HSBC Bank intractable Rate MortgagesRepayments are fixed for the duration of the fixed term, and because it doesnt vary, monthly repayments remain the alike regardless of what happens to interest ratesHSBC currently offers fixed-rate mortgages over 2 and 5 year periods. At the end of the period mortgage will revert to the HSBC Variable Rate unless borrower decide to trend to some other product ingest pertinacious RateInterest shellwriteFixedInterest compute DailyYesUnlimited over payments without subject a chargeNoEarly repayment chargeYes elongate tie in periodNoExit feeNo so-and-so loan can be port if a person set off homeYesIn Fixed Rate Mortgages early repayment charge applies during the fixed rate period, and if we make up our standard monthly payment by m ore than 20% or repay, by any other method, the undivided or any helping of the mortgage, over and above your standard monthly payment during your fixed rate periodTracker MortgagesThe tracker interest we pay is an agree percentage above the Bank of Englands Base rate. As the base rate revokes and falls, the tracker will track these changes, and so plagiarize and fall accordingly. This will refer the monthly paymentsHSBC Tracker mortgages are Lifetime trackers, in that they track the Base rate for the lifetime of the loan. thitherfore we do not have to worry nigh approach shot to the end of a deal, and subsequently switching, with the associated costs.Should Base rates rise you can select to move to a fixed rate where arriere pensee fees may be payable. rollickFixed RateInterest characterVariableInterest measured DailyYesUnlimited over payments without incur a chargeYesEarly repayment chargeNo elongate tie in periodNoExit feeNoCan loan can be port if a person move homeYes Discount MortgagesA snub mortgage is a variable rate mortgage that offers an interest rate that is a tax deduction rate off the HSBC Variable Rate for an hold period (e.g. 2 years).With a discount mortgage, monthly payments will go up and down as the HSBC Variable Rate rises and falls. The HSBC Variable Rate is a rate that is internally set by HSBC.An early repayment charge applies during the discounted rate period, and if we increase our standard monthly payment by more than 20% or repay, by any other method, the friendly unit or any smash of the mortgage, over and above our standard monthly payment during your discounted rate period.FeatureFixed RateInterest TypeVariableInterest Calculated DailyYesUnlimited over payments without incurring a chargeNoEarly repayment chargeYesExtended tie in periodNoExit feeNoCan loan can be port if a person move homeYesGOVT STATISTICS fit in to the government statistics the Mortgage Rescue Scheme employ to monitor the statistics which commo nly gives information on the number of householders with having the mortgage difficulties. This scheme has two main elementsGovernment Mortgage to Rent and Shared EquityThe figures which are presented by Government Office Region are usually based on this scheme and submitted to local Government by local authorities and communities. local anaesthetic authority figures do not contain estimates for missing returns. Information on the local authority solution rate is provided alongside the reported figures for each period. Figures for different periods are shown on separate tabs in the workbook. This is under the Ministry of rightness and the council of mortgage lenders.(www.communities.gov.uk/publications/corporate/statistics/mortgagerescuestatistics2010)Mortgage and landlord possession statistics (NS) 13 March 2010every quarter National Statistics on possession actions issued in county courts by mortgage lenders and social and one-on-one landlords in England and Wales.This is re leased quarterly by the ministry of justice and in relative with UK statistics authority.JustificationAs having the field of banking I am quite raise in reviewing the different strategies followed by the banks in the various fields. Moreover it is getatable for me to collect the information regarding my topic as my friend is serving for the some(prenominal) banks. From them I can get the take information regarding my dissertation. The reason arse choosing this topic is that I can get a direction for my future perspective by having the detailed battlefield of this topic.enquiry QUESTIONSThe close historic parts of the search needed to be covered are as follow-What are the major resemblances among commercial mortgage in the Britain?What are the considerations customers should employ when choosing a mortgage product? seek OBJECTIVESThe infra mentioned aims are set up on the foundation of planned investigate questionsTo sight the different mortgage products of HSBC BankTo recognize the essential advantages of the HSBC mortgages over the other commercial mortgages system in the country,To discover the competent measure.RESEARCH method acting seek plan is very principal(prenominal) the main component of the inquiry method. In this seek method we will give the fundamental report of complete query scheme. query method is the basic initiation of the entire seek in it will plan that the how and when the research will be completed and what actions are indispensable to accomplish this task.This section aims to explain the cause of research methods that would be use for the analysis of the proposed company. The results of the research would indicate the figure of speech of services that need to be offered, and the suitability of these services for the target market.Moore (2000)explains how the methods used will be influenced by constraints, such as time and money. It is important to consider all the methods available and choose a method that is mo st likely to achieve the objective of the research.Inductive and deductive ApproachRESEARCH OPINIONIn the research onion is used to define the unanimous process of research strategy in detail the generic research process onion support the researchers and give them the direction to do work. (Saunders et al, 2000)There are the different layers which represents the following aspects of the Research Methodology.Research PhilosophyResearch ApproachResearch StrategyTime HorizonsData Collection Methods immemorial and Secondary Research basal entropy is that fiber of information which is sore and that hasnt been used or collected before. On the other hand the alternate data is that information which has been collected earlier, by some other sources for their own purpose and can used by others for their convenience .(Saunders et al. 1997).Secondary research is also very important for the establishment of data and the collection of data for the current issues and this also helps to disco ver the relevant studies which can be carried in the past time.Advantages and disadvantages of primary and substitute(prenominal) research methodsPrimary ResearchAdvantagesThis can be used by face to face conversation in the form of interviews or by the telephonic interview.This is used by the help of technology by using mobile phones and through internet communication.A large group of people can be cover in many areas.Wider coverage of geographical areas.This method is cheaper one. .DisadvantagesThere are problems to recrudesce it.The Questions put in this are generally easy to answer.Lower resolution for the historic things.Time consuming.Secondary ResearchAdvantagesThis is time saving method.This can be used by any firm for the research.Sometime this depends upon the case of research which has to be conducted, for that case their advantages and disadvantages vary.Probably accurate.DisadvantagesThe main disadvantage is that in that location is no up to date and is collected ov er the time. And on that point may be changes in that data which has to be updated.Data may be in unsuitable format.The data is free to all and there no competitive advantages the organisation (Ghauri and Gronhaug, 2002)Qualitative and Quantitative ResearchThe table below outlines the differences between qualitative and quantitative dataQualitativeQuantitativeThis research is based on words which are expressed in meaning. base on derivedfrom numbers and data.Results collected are non-standardized and data require miscellany into categories and not in the quantitative form.Result of collection is in the numeric form and data is standardized.Conceptualism is used for conduct the analysis. epitome conducted through there is useOf diagrams and statistics.(Dey (1993) Healey and Rawlinson (1994), cited in Saunders et al (2003))SELECTION OF modeAs I have the topic of mortgage system it will be suitable for my topic if I will go through mixture of twain approaches i.e. both(prenomina l) tributary and primary resources. This will be helpful in collecting the relevant data according to the need and will be serviceable in going to the depth of the research. On my part it is expensive to go through by considering the research onion. Regarding this I will upkeep both approaches for my research given by (Saunders and Thornhill in 2000).ETHICSThe main source of data collection methods for my research is quantitative method which is useful for collecting the facts and figure for my research. Moreover I have contacts in the both banks for collecting the information. The manager Of HSBC Bank is in contact with me and he agreed to assist me in providing information as per my requirement.In order to make my research more accurate I will use the supplemental data and primary data sources as well. By this I can get all the information regarding the mortgage system of the both banks with the required form of data in order to take the comparison of the policies given by th e both banks for the mortgage system they provided to their customers.For the guidelines I will do all the work under my supervisor and take suggestion and help of my supervisor time to time to complete my dissertation.SCOPEThe topic of mortgage system has wider scope in the present time as there is a great demand for the mortgage products in the current market position. The scheme of my topic is controllable therefore I can do better by keep in mind the wider scope of my study. even out this will help me in future to get the good joke in Banking Industry.HSBC Bank Mortgage Policies AnalysisHSBC Bank Mortgage Policies AnalysisINTRODUCTIONHome is the need of every human being and having their own home is dream of every human being. In the United Kingdom price of the houses are very high and it is not possible for every citizen to buy their own home without taking financial help from financial organization like banks or building societies. When bank or a building society helps some one financially by providing loan, so that a citizen is able to buy his/her own home is called mortgage. In other words we can say a mortgage represents a loan on a property or house that has to be paid over a specified period of time.As financial help is incessantly needed for smooth run of ones life so for the convenience of the people there are many financial organizations such as banks help the people financially, who want to buy their own home and property. So mortgage was introduced by the banks, from which people can get financial help so that one is able to buy his/her own home and property. Mortgage system is very popular among the people of the United Kingdom because this is the only way to buy their own property. As we know that the mortgage is that sum of money which is borrowed from the Bank or Building Society for buying a property and that borrowed amount has to be paid back with principle plus interest within fixed time period. Today mortgage has great enormousness as it is the only way with the help of which people are able to buy their own property. This dissertation report is based on the theory of research over the mortgage system of HSBC Bank and specifying the various strategies and policies of their mortgage system. The purpose of this report is to critically evaluate the mortgage system of HSBC Bank. order BackgroundHSBC Bank has its headquarters in London. HSBC took its name from the Hong Kong and Shanghai federation which was founded in 1865 to finance trade between China and Europe. HSBC is one of the largest banking and financial services organization in the world. HSBC has 8,000 offices globally. HSBC Bank is one of the major clearing banks in the United Kingdom having more assets than any other bank. The melodic phrase ranges from the traditional High Street roles of personal finance and commercial banking, to private banking, consumer finance as well as corporate and investment banking. HSBC is listed on the stock exchanges o f London, Hong Kong, New York, Paris having around 220,000 shareholders in 119 countries and territories.HSBC has 1500 branches in United Kingdom. HSBC Bank plc is incorporated in England and Wales and established at 8 Canada Square, London E14 5HQ which is its Registered Office. This bank is regulated by the Financial Services Authority and is registered in the Financial Services Authority Register with the Registration Number 114216. HSBC Bank is member of the Financial Ombudsman Scheme.Literature ReviewA mortgage is a conveyance of land or an assignment of chattels as a security for payment of a debt or the discharge of some other obligation for which it is given. This is the idea of a mortgage and the security is redeemable on the payment or discharge of such debt or obligation, any provision to the irrelevant notwithstanding (Stanley Wilde 1899) Per Lindley MR.The mortgage is derived from the two words i.e. mort and gage which means abruptly pledge. The mortgage is usually si gned by the borrower and agreed before a public notary and is recorded with the County Recorder. In the mortgage system if the mortgagor fails to pay the installment then the lender has right to close out the mortgage and can sale the property to get the payment for future.(Jack P Friedman, 2003 p.173-204)The mortgage is aloantofinancefor thepurchaseofreal estate, with a specified interest rates and fixed payment time period. Theborrower (mortgagor) gives thelender(mortgagee) alienon the propertyascollateralfor the loan. heap can borrow money to buy a home and pay interest on the mortgage to the lender (Bank or Building Society). The lender (Bank) uses borrowers property as security for the loan. This term means that if the borrower fails to pay the monthly installment then lender (Bank) may repossess property.An individual can apply for mortgage from any bank like HSBC, Lloyds TSB, Barclays, and Santander or from across the country (Building Society) or from Islamic Bank of Britai n. The mortgage makes very easier to pay the ample amount in the monthly installment for the fixed time depends on the mortgage plan. (Jack Guttentag, 2004).The mortgage which suits you the best depends on many parameters which mainly include your risk enduring capacity, your personal financial goals and capabilities and your income.In the presence of so many options and offers present in the market it can surely execute a daunting task to select the best mortgage option for you. Considering your dilemma we at finance-strategy.com came up with some useful tit bits which when kept in mind can surely help you make a wise decision towards taking a mortgage.An adjustable rate mortgage is perfect for those situations where you have to stay in that house for a goldbrick period of time and when the interest rates in the market are low and are expected to stay so too during the coming times.On the other hand a fixed rate mortgage fits those situations where in you decide to won that hous e for a longer period of time and the interest rates too are very high at the moment with chances of volatility in the near future. A fixed interest cushions you against these turbulent conditions.The advantages and disadvantages of mortgages will surely take us a step closer towards deciding it for sure if taking a mortgage is the best solution for your situation.AdvantagesThe most important advantage associated with a mortgage is the fact that it allows us to retain the ownership of our property and at the same time helps us in getting financial aid too. There is no need for one to sell or let go of his property to seek some money in exchange. In a mortgage the lender does not receive any share in the ownership of the property but is only entitled to take back the principal amount and the interest accumulated on the principal amount lent by him to you. the lender can only claim ownership on your property in case you default on the repayment schedule.The other benefit associated wi th mortgage is the fact that the interest payments on the mortgage are tax free in nature.Since the schedules of repayment are pre fixed and decided it allows you to plan your financials and expenses accordingly thereby simplifying the entire process for you.By availing a mortgage you now have access to cash hunt down which you were not having in normal conditions and can now use it to satiate your needs and requirements.DisadvantagesThe need of depositing collateral as security works out to be the biggest drawback of mortgages. It restricts the kind of people who can avail a mortgage as only home owners or other asset owners can do so. Also, in case that you default on your payment the lender has the right to claim the property deposited by you as collateral and then subsequently sell it off to claim back the loaned amount he had given you. You have to ensure while taking the mortgage that there is a clause mentioned therein that on repayment of the mortgage the lender has to rel ease the ownership title submitted to him by you.The lender as per his convenience can define several events which he mat term as a default and generally includes inability to pay back the loan, bankruptcy, insolvency or any breach in the mortgage agreement. Therefore the risk of you determination up losing your property increases substantially.Repayment Of MortgagesThere are two methods of repaying mortgage, one can choose from these two methods according to ones personal circumstances.Capital RepaymentWith a capital repayment plan, monthly payment covers the interest charged on mortgage and it also reduces the outstanding balance each month in line with the term selected. With this repayment plan, one can ensure mortgage is fully paid off at the end of the mortgage period.What we get with the repayment optionInterest and capital repaid monthly payment covers the interest and also reduces the total balance outstandingSecure providing all payments are made, the mortgage will be rep aid in full at the end of the agreed mortgage termChoose your repayment term up to a maximum of 30 years.Capital repayment is a repayment option on all of our mortgage products fixed rate, tracker and discount mortgages.Interest onlyWith an interest only option, monthly payment covers only the interest charged on mortgage, freeing up cash to run elsewhere or to invest to pay off mortgage at the end of the mortgage term.By repaying only the interest on mortgage, monthly repayments are lower than with an equivalent capital repayment mortgage.What we get with the Interest only optionInterest only the monthly payment covers just the interest and the original capital amount borrowed remains outstanding throughout the term of the loanLower monthly payments because capital is not repayed, monthly payments will be lower than with a capital repayment mortgageLong repayment term up to a maximum of 40 yearsLower borrowing limit up to a maximum of 75% of the purchase price or the valuation of p roperty (whichever is lower) availability Interest only loans are restricted to home buyers or customers remortgaging from a competitor. Not available to existing customers borrowing further funds.Mortgage products of HSBC BankFixed Rate MortgagesRepayments are fixed for the duration of the fixed term, and because it doesnt vary, monthly repayments remain the same regardless of what happens to interest ratesHSBC currently offers fixed-rate mortgages over 2 and 5 year periods. At the end of the period mortgage will revert to the HSBC Variable Rate unless borrower decide to move to some other productFeatureFixed RateInterest TypeFixedInterest Calculated DailyYesUnlimited over payments without incurring a chargeNoEarly repayment chargeYesExtended tie in periodNoExit feeNoCan loan can be port if a person move homeYesIn Fixed Rate Mortgages early repayment charge applies during the fixed rate period, and if we increase our standard monthly payment by more than 20% or repay, by any other method, the solely or any part of the mortgage, over and above your standard monthly payment during your fixed rate periodTracker MortgagesThe tracker interest we pay is an agreed percentage above the Bank of Englands Base rate. As the base rate rises and falls, the tracker will track these changes, and so rise and fall accordingly. This will chance upon the monthly paymentsHSBC Tracker mortgages are Lifetime trackers, in that they track the Base rate for the lifetime of the loan. Therefore we do not have to worry about coming to the end of a deal, and subsequently switching, with the associated costs.Should Base rates rise you can select to move to a fixed rate where mental reservation fees may be payable.FeatureFixed RateInterest TypeVariableInterest Calculated DailyYesUnlimited over payments without incurring a chargeYesEarly repayment chargeNoExtended tie in periodNoExit feeNoCan loan can be port if a person move homeYesDiscount MortgagesA discount mortgage is a variable ra te mortgage that offers an interest rate that is a discount off the HSBC Variable Rate for an agreed period (e.g. 2 years).With a discount mortgage, monthly payments will go up and down as the HSBC Variable Rate rises and falls. The HSBC Variable Rate is a rate that is internally set by HSBC.An early repayment charge applies during the discounted rate period, and if we increase our standard monthly payment by more than 20% or repay, by any other method, the whole or any part of the mortgage, over and above our standard monthly payment during your discounted rate period.FeatureFixed RateInterest TypeVariableInterest Calculated DailyYesUnlimited over payments without incurring a chargeNoEarly repayment chargeYesExtended tie in periodNoExit feeNoCan loan can be port if a person move homeYesGOVT STATISTICS concord to the government statistics the Mortgage Rescue Scheme used to monitor the statistics which usually gives information on the number of householders with having the mortgage d ifficulties. This scheme has two main elementsGovernment Mortgage to Rent and Shared EquityThe figures which are presented by Government Office Region are usually based on this scheme and submitted to Local Government by local authorities and communities. Local authority figures do not contain estimates for missing returns. Information on the local authority response rate is provided alongside the reported figures for each period. Figures for different periods are shown on separate tabs in the workbook. This is under the Ministry of nicety and the council of mortgage lenders.(www.communities.gov.uk/publications/corporate/statistics/mortgagerescuestatistics2010)Mortgage and landlord possession statistics (NS) 13 March 2010 quarterly National Statistics on possession actions issued in county courts by mortgage lenders and social and private landlords in England and Wales.This is released quarterly by the ministry of justice and in sexual intercourse with UK statistics authority.Just ificationAs having the field of banking I am quite kindle in reviewing the different strategies followed by the banks in the various fields. Moreover it is social for me to collect the information regarding my topic as my friend is serving for the both banks. From them I can get the required data regarding my dissertation. The reason bottom choosing this topic is that I can get a direction for my future perspective by having the detailed study of this topic.RESEARCH QUESTIONSThe most important parts of the research needed to be covered are as follow-What are the major resemblances among commercial mortgage in the Britain?What are the considerations customers should employ when choosing a mortgage product?RESEARCH OBJECTIVESThe below mentioned aims are set up on the foundation of planned research questionsTo study the different mortgage products of HSBC BankTo recognize the important advantages of the HSBC mortgages over the other commercial mortgages system in the country,To disc over the suitable measure.RESEARCH METHODResearch plan is very important the main component of the research method. In this research method we will give the fundamental discipline of complete research scheme. Research method is the basic initiation of the entire research in it will plan that the how and when the research will be completed and what actions are required to accomplish this task.This section aims to explain the type of research methods that would be used for the analysis of the proposed company. The results of the research would indicate the range of services that need to be offered, and the suitability of these services for the target market.Moore (2000)explains how the methods used will be influenced by constraints, such as time and money. It is important to consider all the methods available and choose a method that is most likely to achieve the objective of the research.Inductive and deductive ApproachRESEARCH OPINIONIn the research onion is used to define the whol e process of research strategy in detail the generic research process onion support the researchers and give them the direction to do work. (Saunders et al, 2000)There are the different layers which represents the following aspects of the Research Methodology.Research PhilosophyResearch ApproachResearch StrategyTime HorizonsData Collection MethodsPrimary and Secondary ResearchPrimary data is that type of information which is tonic and that hasnt been used or collected before. On the other hand the secondary data is that information which has been collected earlier, by some other sources for their own purpose and can used by others for their convenience .(Saunders et al. 1997).Secondary research is also very important for the establishment of data and the collection of data for the current issues and this also helps to discover the relevant studies which can be carried in the past time.Advantages and disadvantages of primary and secondary research methodsPrimary ResearchAdvantagesTh is can be used by face to face conversation in the form of interviews or by the telephonic interview.This is used by the help of technology by using mobile phones and through internet communication.A large group of people can be cover in many areas.Wider coverage of geographical areas.This method is cheaper one. .DisadvantagesThere are problems to forge it.The Questions put in this are generally easy to answer.Lower response for the historic things.Time consuming.Secondary ResearchAdvantagesThis is time saving method.This can be used by any firm for the research.Sometime this depends upon the type of research which has to be conducted, for that case their advantages and disadvantages vary.Probably accurate.DisadvantagesThe main disadvantage is that there is no up to date and is collected over the time. And there may be changes in that data which has to be updated.Data may be in unsuitable format.The data is free to all and there no competitive advantages the organisation (Ghauri an d Gronhaug, 2002)Qualitative and Quantitative ResearchThe table below outlines the differences between qualitative and quantitative dataQualitativeQuantitativeThis research is based on words which are expressed in meaning. base on derivedfrom numbers and data.Results collected are non-standardized and data require assortment into categories and not in the numerical form.Result of collection is in the numerical form and data is standardized.Conceptualism is used for conduct the analysis.Analysis conducted through there is useOf diagrams and statistics.(Dey (1993) Healey and Rawlinson (1994), cited in Saunders et al (2003))SELECTION OF METHODAs I have the topic of mortgage system it will be suitable for my topic if I will go through mixture of both approaches i.e. both secondary and primary resources. This will be helpful in collecting the relevant data according to the need and will be useful in going to the depth of the research. On my part it is expensive to go through by conside ring the research onion. Regarding this I will bring up both approaches for my research given by (Saunders and Thornhill in 2000).ETHICSThe main source of data collection methods for my research is quantitative method which is useful for collecting the facts and figure for my research. Moreover I have contacts in the both banks for collecting the information. The manager Of HSBC Bank is in contact with me and he agreed to assist me in providing information as per my requirement.In order to make my research more accurate I will use the secondary data and primary data sources as well. By this I can get all the information regarding the mortgage system of the both banks with the required form of data in order to take the comparison of the policies given by the both banks for the mortgage system they provided to their customers.For the guidelines I will do all the work under my supervisor and take suggestion and help of my supervisor time to time to complete my dissertation.SCOPEThe to pic of mortgage system has wider scope in the present time as there is a great demand for the mortgage products in the current market position. The theory of my topic is controllable therefore I can do better by keep in mind the wider scope of my study. redden this will help me in future to get the good caper in Banking Industry.