UK buy-to-let mortgages

Monthly payments are lower on an interest-only mortgage as you just pay the interest on the loan each month, not the capital. When you apply, you must show you have a means to pay back the loan at the end of the term. For example, you could have an endowment policy, an investment or a savings plan which matures when the loan ends.

With a capital repayment mortgage, monthly payments are higher as you pay the interest and capital on your loan each month. At the end of the term, the loan is paid off if all payments have been made.

The maximum loan term is 25 years.

Properties must be let under Assured Shorthold Tenancies (ASTs) or through a Company Let Agreement where a company takes on a residential tenancy agreement as the tenant on behalf of an employee.

Early Repayment Charges

An Early Repayment Charge (ERC) applies to our fixed rate mortgages. The Early Repayment Charge is calculated at 1.00% per each remaining full year (for part years, this is calculated on a pro-rata basis), based on the amount repaid early, above the annual overpayment allowance. This includes if the customer switches to a different rate or lender before the end of the early repayment charge period.

The annual overpayment allowance for fixed rate mortgages is 10.00% of the balance of the loan outstanding at the start of each rolling year from the anniversary of when the fixed rate is applied until the end of the fixed rate period. If the customer does not use their annual overpayment allowance in any year, it will not be carried over to a subsequent year.

This ERC cannot be waived.

Early Repayment Charges do not apply to tracker rate or HSBC Expat Standard Variable Rate mortgages so unlimited overpayments can be made to these rate types without penalty.

Booking fee

A non-refundable fee charged on some mortgages to secure a particular mortgage deal.

Valuation fee

As part of the application you'll be charged a Standard Valuation fee for valuing the property. This is so we can decide if the property is safe to lend on. This fee varies depending on property value and size.

You can select from a 2 year fixed rate, 5 year fixed rate or 2 year tracker rate.

A fixed rate will offer a fixed monthly repayment for an agreed duration whereas a tracker rate will vary in line with the Bank of England Base Rate.

Following the expiry of the fixed or tracker rate period, the mortgage rate will move to the HSBC Expat Standard Variable Rate.

The HSBC Expat Standard Variable Rate will vary over the term of the loan and is a variable rate set internally by HSBC. The HSBC Expat Standard Variable Rate does not track the Bank of England base rate.

If you're already a customer, contact your Relationship Manager to find out more about buying a buy-to-let property in the UK.

Premier customers: +44 1534 616 081

Advance customers: +44 1534 616 082

If you're eligible to apply, you can request a call back using our enquiry form. We'll be in touch once it's been reviewed.

Please have your 10 digit PBN and six digit PIN to hand before you call. If you can't remember either of these options, please have your personal details with you as our agents may need to confirm your identity.

HSBC Premier customers call: +44 1534 616 313

HSBC Advance customers call: +44 1534 616 212

HSBC Hong Kong residents (local call rate) call: +852 2822 3133

Call: +44 1534 616 055