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.

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.

Mortgage rates

The rate of interest you pay for the loan term.
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%
3.24% 3.42%
Up to 75% LTV
GBP 1,000,000 2.99%
3.74% 3.92%

Mortgage rates

The rate of interest you pay for the loan term.
Loan to value (LTV) Up to 60% LTV
Maximum loan size GBP 2,000,000
Tracker rate1
2.49%
Variable rate2 3.24%
Annual percentage rate (APR)3
3.42%
Loan to value (LTV) Up to 75% LTV
Maximum loan size GBP 1,000,000
Tracker rate1
2.99%
Variable rate2 3.74%
Annual percentage rate (APR)3
3.92%

Representative example

Loan amount

GBP 500,000

LTV

70%

Repayment term

20 years (240 months)

Representative interest rate

3.74% (2.99% over the Bank of England base rate of 0.75%4)

Monthly repayments

GBP 2995.73 a month for capital repayment
GBP 1558.33 a month for interest only

Total amount to repay

GBP 718,975.20

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 0.75% as of 18/03/19, plus the tracker interest rate.
3The overall cost in comparison to other mortgages.
4Rate as of 18/03/19. 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.

 

 

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