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HSBC Buy To Let Mortgage

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.

Latest news

Cost of fixed rate mortgages have started to increase as Bank of England rate rise looms

A number of high street banks have started to increase their mortgage rates. The reason for this is that banks are having to pay more to access the funds they lend out to UK homeowners.

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