It also expands products' availability to residents of five additional countries
HSBC UK has announced that it will offer international buy-to-let mortgages to brokers for the first time.
The expansion aims to assist over 23,000 mortgage brokers in facilitating UK property investments for residents across 14 countries and regions.
The bank is extending its services to residents from Egypt, Malaysia, the Philippines, Qatar, and Taiwan, enabling them to invest in the UK property market through buy-to-let and residential mortgages. Residents from Australia, Hong Kong, Singapore, Switzerland, the UAE, the USA, Guernsey, the Isle of Man, and Jersey can also access HSBC UK’s international services.
“Our broker partners provide us with a critical barometer around how we shape our proposition in order to help even more customers with their mortgage needs,” said Chris Pearson, head of intermediary mortgages at HSBC UK.
“That’s why the introduction of an international buy-to-let offering, plus the incorporation of another five countries to our roster, will be a great addition to their suite of products. With HSBC’s global heritage, we are ideally placed to support our brokers in this market segment.”
According to HM Revenue & Customs data, investments in the UK property market by international investors increased in 2023, with foreign buyers accounting for 1.4% of all property transactions in the year ending March 2023, a 20% rise from the previous year.
The increase in investment by non-UK residents comes as the private rental sector grapples with supply and demand challenges, driving up rental prices, with the Office for National Statistics reporting a 6.2% rise in the UK’s annual private rental prices earlier this year.
According to Emma Hollingworth, head of specialist lending at HSBC UK, investment into the UK property market by overseas investors can help with keeping the important balance of supply and demand, potentially helping keep a lid on rental prices.
“We are excited to be expanding availability of our international buy-to-let mortgages to brokers in addition to accepting applications from residents in five more countries,” Hollingworth said. “With demand for rental properties remaining high, we hope our expansion in the international buy-to-let market could open up new mortgage corridors and support growth in the private rented sector; while at the same time being a stable investment for our international customers.”
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