You may want to get a foothold on the property ladder and buy somewhere in the UK if you live or work abroad. For cash buyers this shouldn't be too difficult, but it may not be as easy if you need to apply for a mortgage. A lack of a UK credit history and a foreign currency salary could result in lenders classifying you as high risk and not offering you a mortgage. At HSBC Expat, we provide lending services to expats for UK properties and may be able to offer you a mortgage in situations where other lenders may turn you down.
Residential or buy-to-let
You can apply for a residential mortgage if you're looking to buy a home for you and your family to live in, while a buy-to-let mortgage is for property you plan to rent out. We offer mortgages through HSBC Expat and HSBC UK. Residential mortgages are provided by HSBC UK while buy-to-let mortgages are through either HSBC Expat or HSBC UK.
Interest only or capital repayment
Both our residential and buy-to-let mortgages are available on an interest only or capital repayment basis. With an interest only mortgage, the monthly payments are lower as you just pay the interest on your loan each month, but not the capital. This option may be suitable if you have a means to pay back your loan at the end of the term. On a capital repayment mortgage, the monthly payments are higher as you pay the interest and capital back each month, so your loan is paid off at the end of the term if you've not missed any payments.
Fixed, tracker, discount and variable rates
The different interest rates available on our mortgages can be confusing. There are fixed, tracker, discount and variable rates. With fixed rates the payments are the same each month while with tracker, discount or variable rates the monthly payments could vary. Tracker rates are tracked at a percentage rate above the Bank of England base rate which could go up or down. Discount rates are at a percentage discount off the HSBC Variable Rate which we may put up or down if the Bank of England base rate changes. Our variable rate is the rate you'll move onto at the end of your fixed, tracker or discount rate period if you decide not to remortgage.