| Helping you invest in rental property |
Buy-to-let mortgages allow you to invest in the property market by purchasing homes in the UK to rent to tenants. If you're a HSBC Expat Premier customer, who is looking to buy or refinance a buy-to-let property, our capital repayment or interest only mortgages could be the answer.
Alternatively we can refer you to HSBC UK who also provide buy-to-let mortgages. As we discuss your mortgage needs we can give you an overview of all options to enable you to decide which option suits your needs best.
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 onlyChoose whether to pay off the loan and interest each month or just the interest.
- Tracker interest rateSet at an agreed percentage above the Bank of England base rate for the term of the loan.
- Flexible repayment termsNo 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% |
2.59% | 2.80% |
| Up to 75% LTV |
GBP 1,000,000 | 2.99% |
3.09% | 3.32% |
| Loan to value (LTV) | Up to 60% LTV |
|---|---|
| Maximum loan size | GBP 2,000,000 |
| Tracker rate1
|
2.49% |
| Variable rate2 | 2.59% |
| Annual percentage rate (APR)3
|
2.80% |
| Loan to value (LTV) |
Up to 75% LTV |
| Maximum loan size | GBP 1,000,000 |
| Tracker rate1
|
2.99% |
| Variable rate2 | 3.09% |
| Annual percentage rate (APR)3
|
3.32% |
Representative example
Loan amount
GBP 500,000
LTV
70%
Repayment term
20 years (240 months)
Representative interest rate
3.09% (2.99% over the Bank of England base rate of 0.10%4)
Monthly repayments
GBP 2,796.00 a month for capital repayment
GBP 1,289.00 a month for interest only
Total amount to repay (capital repayment)
GBP 671,137.43
Things you should know
Interest only
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.
Capital repayment
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.
Loan term
The maximum loan term is 25 years.
Letting restrictions
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.
Fees
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/security 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 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.
Eligibility
HSBC are not able to provide mortgages to residents in all countries. Subject to confirmation that you meet borrower eligibility criteria and depending upon your country of residence, individual circumstances and your requirements.
Apply by phone
Premier customers
Call your Relationship Manager to discuss your buy-to-let mortgage needs.
| +44 1534 616 081 |
Advance customers5
Call us to discuss your buy-to-let mortgage options and if you can upgrade to Premier.
| +44 1534 616 082 |
New to HSBC Expat
Call us to find out if we can help with a buy-to-let mortgage.
| +44 1534 616 316 |
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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.
5We no longer offer Advance to new customers.
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
Buying a property abroad
Find out how you can get a mortgage to buy your dream home in another country.
Buying a property in the UK
Looking to invest in a property or buy a home in the UK? We could help bring your plans to life.
International mortgages
Our global connections can help you with an international mortgage application.