HSBC is one of the largest banks in the world and offers buy to let finance for both landlords with one or two rental properties and those with much larger portfolios.
Types of Buy to Let mortgage
HSBC have a number of mortgage products on offer which will affect not only how much you can borrow, but also how much you will have to repay on a monthly basis.
Interest only buy to let mortgages allow you to minimise your monthly repayments by only paying the interest owed. This leaves you with the full balance to pay when the mortgage term expires.
Capital and interest mortgages require you to pay more each month as you are covering the interest and an additional sum which goes towards reducing the capital owed.
Fixed rate buy to let mortgages give you a set rate of interest for the first 2-5 years after which you move to a standard variable rate. This can make your repayments easier to plan for.
Tracker mortgages set their interest rates relative to the Bank of England Base Rate, plus a fixed extra percentage. This ties the interest rate you pay to the general rate of inflation.
Lending criteria for HSBC Buy to Let mortgages
To be eligible for a HSBC buy to let mortgage you must:
- Earn at least £25,000 per year
- Have owned and lived in your own home for 6 months or more
- Be buying a property in the UK
- Not be purchasing a House of Multiple Occupancy (HMO)
If you qualify you may be able to:
- Borrow up to £2,000,000
- Have up to 5 buy to let mortgaged properties
- Borrow up to 75% of the relevant property’s market value
There are many different buy to let lenders, so if you do not meet the criteria for HSBC, you may still be able to qualify for a loan with one of their competitors. An experienced mortgage advisor will be able to help you explore your options.
Interest rates on HSBC Buy to Let mortgages
Interest rates vary considerable from one mortgage product to the next, so it is a good idea to understand what influences these rates so you can have the best chance of getting a mortgage deal you can afford.
One of the biggest factors that will affect your interest rate which you might not be aware of is your loan to value ratio or LTV. This shows what percentage of your property’s market value you are trying to borrow. So a £50,000 loan on a £100,000 property would give you an LTV of 50%. In most cases, a higher LTV will result in higher interest rates.
Compare Buy to Let mortgage rates
Using our free mortgage calculator you can quickly and easily find the best deals on buy to let mortgages from all of the leading lenders. That way you can compare all the different interest rates available on various mortgage products to find the ones that offer the best value for you.
Independent Buy To Let Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
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Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on HSBC & alternative lender options.
