To be able to borrow on a buy to let mortgage basis from HSBC, you must meet certain eligibility criteria:
- HSBC buy to let mortgages are only available to individuals who are already HSBC Premier customers
- The property has to be situated in the UK
- £25,000 is the minimum loan amount
- £500,000 is the maximum loan amount
- 75% is the maximum loan to value ratio available
- A professional valuation is required prior to agreeing to a buy to let mortgage
- All properties with HSBC mortgages must be under the Assured Short hold Tenancies (ASTs) or Company Lets
- The maximum mortgage plan is 15 years for plans of interest only and for capital investment the maximum is 25 years
- You must have owned and lived in your existing property for at least 6 months
To check the affordability of a Buy to let mortgage the rental income of the property will be assessed. The rent has be 125% or more of the mortgage payment, using an interest rate that takes into account the possibility of future interest rate rises.
Before you take out a buy to let mortgage
Buy to let mortgages like most financial products, such as credit cards or current accounts, can vary greatly between lenders and plans. For this reason it is wise to research all of the different options before you lock yourself into a plan. After all once you do commit to one you are most likely going to need to make repayments for a number of years. You can use the tables above to see some of the latest deals from various different providers.
When comparing different mortgages remember to factor in any arrangement fees and other costs, if the mortgage with the lowest APR has high set up fees it could actually cost you more than some other plans available.
Consider what sort of repayments you would like to make on your buy to let mortgage.
Different types of mortgage payments
- Fixed Rate – With a Fixed Rate mortgage your interest payments are the same throughout the course of the deal, so you know how much you will be paying for the whole introductory period. After this you will usually be put onto the lenders Standard Variable Rate (SVR)
- Tracker – Tracker mortgages are linked to the Bank of England’s base interest rate. This means that if the Bank of England either raises or lowers its base rate the interest you pay on your mortgage will also change to reflect this.