Why choose HSBC?
If you're investing in property you want a lender who has a strong market position and plenty of experience. Whether you're starting out or expanding your portfolio, HSBC's Buy to Let mortgages could be the answer.
A buy-to-let investment can be a big commitment. As with any investment, you need to understand the risks as well as any potential upside.
Our Buy to Let mortgages are available at up to 75% loan to value (LTV). A maximum buy-to-let lending limit applies.
Who can apply
To apply for our Buy to Let mortgage, you'll need:
- a minimum annual salary of £25,000
- to have owned and lived in your existing property for at least 6 months
- to be buying a property in the Channel Islands or Isle of Man
- to let your property under a suitable tenancy agreement or for business purposes
Your property can't be a House in Multiple Occupancy (HMO), such as a student let. We also can't lend to you if you're a professional or portfolio landlord.
A professional landlord (or landlords, for joint mortgage holders) has more than £2,000,000 in buy-to-let borrowing from all lenders. Alternatively, more than 50% of their total gross annual income (or joint income) comes from rent.
A portfolio landlord has more than 4 mortgaged buy-to-let properties, including the one they're applying for now.
All Buy to Let mortgages are subject to underwriting and lending criteria that may vary from time to time. You may have to pay fees and charges, including to your existing lender.
How much can you borrow?
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 Buy to Let 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 145% of your mortgage payment. For example, if your monthly payment is £100 (100%), your monthly rental income must be at least £145 (145%).
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%.