Available to HSBC Premier customers
We could help you diversify your investment portfolio with a buy-to-let mortgage for properties in the UK.
Through HSBC Bank plc we offer the choice of tracker and fixed rate buy-to-let mortgages. If you are looking to invest in the UK, a buy-to-let mortgage could be the opportunity you are looking for.
Buy-to-let mortgages are mortgages specifically designed for those investors who seek to invest in the property market.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Please note that buy-to-let mortgages from HSBC Bank plc are for properties located in the UK mainland only and exclude properties located in the Isle of Man and the Channel Islands.
Eligibility criteria
- HSBC Premier buy-to-let mortgages are available to HSBC Premier customers
The property must be in the UK and HSBC requires the first legal charge* over the property
- To be eligible for HSBC Premier you must maintain a minimum Relationship Balance of £60,000**, or currency equivalent, across all your HSBC Expat accounts and investments. Read more about our minimum balance requirements. HSBC Premier customers in another country automatically qualify for Premier with us. All customers must be aged 18 or over.
- The loan values offered start at a minimum of £25,000 and a maximum of £500,000 (whether single or joint borrowers). Should your borrowing needs not fit within this please contact us
- Your deposit needs to be a minimum of 25% of the amount you wish to borrow. HSBC Bank plc will lend a maximum of 75% of the property value
- A standard professional valuation is required for all applications
- Properties must be let under Assured Shorthold Tenancies (ASTs) or Company Lets
- The maximum mortgage term is 25 years for capital repayment plans and 15 years for interest only plans
- You must be able to demonstrate that you can meet the monthly repayments
- Other conditions may apply
* A legal right under which HSBC Bank plc has the right to decide on what to do with a property if the borrower fails to maintain the repayments until the mortgage is fully repaid.
**HSBC Premier is free of monthly charges, however, a £35 underfunding fee will apply for any given month where your Relationship Balance falls below the minimum.
Interest rate options
HSBC Bank plc offer fixed and tracker interest rates with the choice of capital repayment or interest only repayment plans. Before you proceed with a mortgage you should make sure that the monthly repayments are affordable.
An Early Repayment Charge applies if you increase your standard monthly payment by more than 20% or repay, by any other method, the whole or any part of the mortgage, over and above your standard monthly payment during a fixed rate period.
In more details
Interest rate options
| |
Tracker |
Tracker |
2 Year Fixed |
2 Year Fixed |
Maximum Loan To
Value (LTV) |
65% |
65% |
75% |
75% |
65% |
65% |
75% |
75% |
| Initial Rate |
3.99%* |
4.49%* |
4.49% |
4.99%* |
3.99% |
4.49% |
4.49% |
4.99% |
| Rate Period |
Term* |
Term* |
Term* |
Term* |
30.09.2014 |
30.09.2014 |
30.09.2014 |
30.09.2014 |
Then changing to
variable rate currently |
N/A* |
N/A* |
N/A* |
N/A* |
5.00% |
5.00% |
5.00% |
5.00% |
Overall cost for
comparison is |
4.2% APR |
4.6% APR |
4.7% APR |
5.2% APR |
5.0% APR |
5.1% APR |
5.1% APR |
5.2% APR |
| Booking fee |
£1,499 |
£499 |
£1,499 |
£499 |
£1,499 |
£499 |
£1,499 |
£499 |
Your property may be repossessed if you do not keep up repayments on your mortgage.
*The tracker mortgage interest rate is set at an agreed percentage above the Bank of England base rate for the term of the mortgage. The monthly repayments rise and fall (track) in line with changes to the base rate.
Loan to Value ratio (LTV) - The loan to value represents the percentage of the value of the property which the borrower is seeking to borrow. E.g. a £100,000 property with an £75,000 mortgage = a 75% LTV.
Initial Rate - This is the percentage rate at which the lender calculates the interest that is charged to the borrower on a mortgage. HSBC Tracker mortgage interest rates will be the Bank of England Base Rate plus 3.99%
(for 75% LTV) and 3.49% (for 65% LTV). The Bank of England Base Rate is set by the Bank of England.
Rate Period - The period during which the fixed or tracker rate applies.
Variable Rate - Following the expiry of the fixed rate period, the mortgage rate will revert to the HSBC Premier buy-to-let mortgage variable rate. The HSBC Premier buy-to-let mortgage variable rate will vary from time to time, and is set by HSBC Bank plc.
Over all cost for comparison is shown in APR - APR stands for Annual Percentage Rate and is the overall cost for comparison. This means that it can be used to compare loan offers.
Booking Fee - A fee charged on some mortgages to secure a particular mortgage deal and/or to cover administration costs.
Arrangement Fee - The fee charged for administration involved in arranging the loan.
More on Capital Repayment and Interest Only repayment methods
Buy-to-let fees and charges
Affordability
Affordability for buy-to-let can be assessed from either rental income or salaried income. If rental income applies you must consider the deduction of agent's fees. Normally this is about 15% of the rental income. We require that the rent must be at least 130% of the mortgage interest payments after the deduction of agent's fees, e.g. if the monthly payment is £100 (100%) the monthly rental income must be at least £130 (130%) plus agents fees. To assess the value of the loan, you can afford, a Rental Income Assessment is carried out.
Find out more about buy-to-let mortgages
Existing HSBC Premier Customers
Please call your Relationship Manager or Team on +44 1534 616 086
If you are not currently a customer with us and would like to discuss becoming a HSBC Premier customer please call us on +44 1534 616 055
Your property may be repossessed if you do not keep up repayments on your mortgage.
Please note that buy-to-let mortgages from HSBC Bank plc are for properties located in the UK mainland only and exclude properties located in the Isle of Man and the Channel Islands.
Lines are open 24/7. Calls may be monitored and/or recorded for security and service improvement purposes.
