HSBC Buy To Let Mortgages
How much you could borrow
Special features of what we offer include:
- Whole of market service - we can compare HSBC with other buy to let deals from most UK lenders
- Latest deals - Access to leading buy to let market mortgage rates
- Exclusive rates - Access to exclusive buy to let loan deals not available on the high street
- Fast turnaround - Speak to us today if you need to move quickly
- Specialist lenders - We have lenders who will consider adverse credit, complex income, unusual properties, lending in retirement, short term finance.
As your mortgage is such an important transaction, good advice is imperative.
HSBC buy to let mortgages
Whether you already have an existing portfolio of multiple rental properties or you are looking to get a buy to let mortgage for the first time, you may be wondering if HSBC has the right plan for you.
To be able to borrow on a buy to let mortgage basis from HSBC, you must meet certain eligibility criteria:
- HSBC buy to let mortgages are only available to individuals who are already HSBC Premier customers
- The property has to be situated in the UK
- £25,000 is the minimum loan amount
- £500,000 is the maximum loan amount
- 75% is the maximum loan to value ratio available
- A professional valuation is required prior to agreeing to a buy to let mortgage
- All properties with HSBC mortgages must be under the Assured Shorthold Tenancies (ASTs) or Company Lets
- The maximum mortgage plan is 15 years for plans of interest only and for capital investment the maximum is 25 years
- You must have owned and lived in your existing property for at least 6 months
Changes to buy to let mortgage market
The way lenders consider buy to let mortgage applications has changed since the Bank of England’s Prudential Regulation Authority enforced certain amendments to the buy to let mortgage regulations.
As a result of the changes, Lenders now apply a stricter income stress test than before. The majority of lenders, including HSBC, will review landlords’ income to ensure that they can afford mortgage payments. To satisfy the income stress test, landlords have to demonstrate that they can afford mortgage payments in the event that the interest rate increases to 5.5%.
In addition, the regulations have forced the majority of lenders to increase their rental coverage ratio criteria. Most lenders request that landlords have a rental coverage ratio of at least 145% for standard buy to lets and up to 170% for houses in multiple occupation. The extra rental coverage percentage is to ensure the landlord can afford mortgage repayments if, for any period of time, their property is without tenants.
Finally, landlords cannot spread equity across their property portfolio. This may be an issue for some landlords, as lenders will no longer provide buy to let mortgages to landlords with one or more properties that are not profitable. Upon application, lenders will review the landlord’s entire property portfolio to make sure every property is profitable.
Before you take out a buy to let mortgage
Buy to let mortgages like most financial products, such as credit cards or current accounts, can vary greatly between lenders and plans. For this reason, it is wise to research all of the different options before you lock yourself into a plan. After all, once you do commit to one you are most likely going to need to make repayments for a number of years. You can use the tables above to see some of the latest deals from various different providers.
When comparing different mortgages remember to factor in any arrangement fees and other costs, if the mortgage with the lowest APR has high set up fees it could actually cost you more than some other plans available.
Consider what sort of repayments you would like to make on your buy to let mortgage.
Different types of mortgage payments
- Fixed Rate – With a Fixed Rate mortgage your interest payments are the same throughout the course of the deal, so you know how much you will be paying for the whole introductory period. After this you will usually be put onto the lenders Standard Variable Rate (SVR)
- Tracker – Tracker mortgages are linked to the Bank of England’s base interest rate. This means that if the Bank of England either raises or lowers its base rate, the interest you pay on your mortgage will also change to reflect this.
There are a wide range of mortgages available for buy to let investments. You may therefore benefit from seeking the assistance of an independent adviser, who can use their expertise to find the best deals for your circumstance. To see if we can help you, fill in our online contact form to request a call back for a free initials consultation or you can call us on 0117 403 4474