HSBC raises its maximum buy-to-let loan size from £1 million to £2 million
HSBC for Intermediaries has increased its maximum loan size for buy-to-let mortgages from £1 million to £2 million and eased some of its acceptance criteria.
The bank has made it easier for landlords to secure its buy-to-let mortgages by allowing applicants to use their latest years' income when they are self-employed to prove they have a minimum acceptable salary of £25,000.
HSBC has also removed the professional landlord policy to allow applications from individuals with buy-to-let borrowing of greater than £2 million across all lenders, also when more than 50% of the customer’s total gross annual income is from rental income.
Aaron Strutt, product director at Trinity Financial, says: “HSBC does have some impressively priced rates, but they are not always that easy to qualify for. If you have a larger deposit or lots of equity in the property, plus strong rental income, you are more likely to get the mortgage you require.
“There is a lot of competition in the buy-to-let market. It is possible to secure more generous mortgages if you have a smaller deposit or if you're a portfolio landlord.
How competitively priced are HSBC's rates?
HSBC offers some of the most competitively priced buy-to-let mortgages, especially for borrowers seeking £1 million+ mortgages.
HSBC’s lowest fixed rate is 2.19%, available for property purchases. The remortgage rate is 0.05% cheaper. It is fixed until 31 July 2024, and applicants will need a 40% deposit to qualify.
After the fixed period, the mortgage reverts to the lender's standard variable rate, which is currently 5.10%. There is a £1,999 arrangement fee.
Representative example: A capital and interest mortgage of £500,000 payable over 25 years, initially on a fixed rate basis until 31 July 2024 at 2.19% and then the bank's standard variable, currently 5.10% for the remaining 23 years, 2.19% would require 25 monthly repayments of £2,165.83 followed by 275 payments of £2,888.82. The total amount repayable would be £849,165.56 made up of the loan amount, plus interest (£347,149.53) and £1,999 (product fee), £0 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4.9% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation