It also reduces residential product rates
HSBC UK has enhanced its mortgage offerings, increasing loan-to-value (LTV) limits for buy-to-let borrowers and reducing rates across its residential product range.
The high street lender has raised the maximum LTV on its buy-to-let mortgage products to 80% for loans up to £400,000. The updated range includes a five-year fixed rate at 5% with a £1,999 fee. The change allows landlords to secure properties with a lower deposit requirement.
The bank is also lowering rates on a broad selection of residential mortgages, with rate cuts across various LTV bands and borrower categories. The 90% LTV two-year fixed rate mortgage with a £999 fee for home purchases and first-time buyers has been reduced by 0.14% to 4.85%, while the FeeSaver equivalent has dropped by 0.20% to 5.12%. Both options include £250 cashback. For Premier customers remortgaging at 60% LTV, the two-year fixed rate now starts at 4.11% with a £999 fee.
“We are continually evolving to help people with their homebuying aspirations, whether that is someone buying their first home to help provide financial security for their family, someone coming to the UK from abroad and putting down roots or someone looking to take on a buy-to-let property to supplement their income,” said Oli O’Donoghue, head of mortgages at HSBC UK.
“There is still strong demand in the buy-to-let market, and by increasing the maximum LTV on our range up to 80%LTV we are making purchasing a buy-to-let property more accessible to people and providing greater flexibility, enabling a reduced deposit and increasing the borrowing power of the applicant.”\
The latest adjustments follow HSBC UK’s recent policy change aligning mortgage eligibility criteria for foreign nationals with those for UK residents, provided they have indefinite leave to remain and apply directly through the bank. The lender has also lowered its standard variable rate by 0.25% to 6.74%.
The rate reductions come amid falling swap rates, which influence fixed rate mortgage pricing. Since the Bank of England’s rate cut last month, lenders have gained more flexibility to reduce borrowing costs, prompting a wave of interest rate cuts across the mortgage market.
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