|Helping you invest in rental property|
UK stamp duty holiday
If you’re looking to buy a property to let in the UK, the stamp duty holiday has now been extended until 30 June 2021. This means that the first £500,000 of the property’s value is exempt from stamp duty tax. So, you could save up to £15,000.
To benefit from our international mortgage products, you’ll need to open an HSBC Expat Bank Account.
What you'll get with the mortgage
Capital repayment or interest only
Choose whether to pay off the loan and interest each month or just the interest.
Tracker interest rate
Set at an agreed percentage above the Bank of England base rate for the term of the loan.
Flexible repayment terms
No charge if you make overpayments or repay your loan early.
|Loan to value (LTV)||Maximum loan size||Tracker rate1
||Variable rate2||Annual percentage rate (APR)3
|Up to 60% LTV||GBP 2,000,000||2.49%
|Up to 75% LTV
|Loan to value (LTV)||Up to 60% LTV|
|Maximum loan size||GBP 2,000,000|
|Annual percentage rate (APR)3
|Loan to value (LTV)||
Up to 75% LTV
|Maximum loan size||GBP 1,000,000|
|Annual percentage rate (APR)3
20 years (240 months)
Representative interest rate
3.09% (2.99% over the Bank of England base rate of 0.10%4)
GBP 2,796.00 a month for capital repayment
GBP 1,289.00 a month for interest only
Total amount to repay (capital repayment)
Things you should know
Monthly payments are lower on an interest only mortgage as you just pay the interest on the loan each month, not the capital. When you apply, you must show you have a means to pay back the loan at the end of the term. For example, you could have an endowment policy, an investment or a savings plan which matures when the loan ends.
With a capital repayment mortgage, monthly payments are higher as you pay the interest and capital on your loan each month. At the end of the term, the loan is paid off if all payments have been made.
The maximum loan term is 25 years.
Properties must be let under Assured Shorthold Tenancies (ASTs) or through a Company Let Agreement where a company takes on a residential tenancy agreement as the tenant on behalf of an employee.
If we offer you a mortgage, you'll receive a Key Facts Illustration (KFI) which states the fees you'll need to pay. We charge:
- an arrangement fee of GBP 1,797 to secure your mortgage deal and/or for administration costs. The fee is 50% on second and third mortgages and there is no fee for remortgages
- a security fee of GBP 145
- a standard valuation fee for valuing the property so we can decide if the property is safe to lend on
We don't charge a completion fee for the electronic transfers of funds or an exit fee if you repay your mortgage early
How to apply
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1A rate tracked above the Bank of England base rate.
2The interest rate you pay which is the Bank of England base rate of 0.10% as of 19/03/20, plus the tracker interest rate.
3The overall cost in comparison to other mortgages based on £100,000 over 25 years.
4Rate as of 19/03/20. The rate is subject to change.
Your property may be repossessed if you do not keep up repayments on your mortgage.
You should always think carefully before purchasing a buy-to-let property. The value of a property is a matter of opinion and not a matter of fact, not all properties will grow in value or provide sufficient income to cover all your associated costs. You will be responsible for your costs even if you do not have a tenant. Property can also be difficult to sell and you may not be able to sell quickly if you need to do so.
You might be interested in
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