Buy-to-let mortgages

When we consider the maximum we can lend you, we take into account all your buy-to-let borrowing, including that with other lenders. The amount is also subject to our lending limits.

To make sure you can afford the loan, we'll carry out a rental income affordability assessment. The rent the property brings in must be at least 125% of your mortgage payment. For example, if your monthly payment is £100, your monthly rental income must be at least £125.

When we make our calculations, we use an interest rate that takes into account that rates may rise. This helps to make sure your loan is affordable, not just now but in the future too.

If you already have an HSBC Buy-to-Let mortgage, you might be able to borrow more on your existing property. However, the total amount you're borrowing must not come to more than 75% of the value of the property. The exception to this is if you've borrowed more to consolidate your debts. Then, the most you can borrow is £30,000, with a maximum LTV of 60%.

We’ll ask you to provide some supporting documents so that we can evaluate your mortgage application. We’ll also want to know about the rental income you’re expecting and potential running costs for the property, as well as details of any other buy-to-let properties you own. Having all of this ready will help the process to go as smoothly as possible. 

We can assess your application for either capital repayment or interest-only repayment.

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, although monthly payments are higher from paying the interest and capital each month, you have the benefit that at the end of the term the loan is paid off without the need for a separate repayment strategy, provided all payments have been made.

Deposits for buy-to-let properties tend to be higher than they are for residential properties. The minimum deposit for an HSBC buy-to-let mortgage is 25% of either the property value or purchase price, whichever is higher.