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Qualifying For an HSBC Buy to Let Mortgage
Are you looking for a lender to help fund the purchase of buy to let property, or to remortgage investment properties that you already own? HSBC offers several loan products designed to meet the needs of UK landlords. The company offers both fixed and tracker buy to let mortgage options, as well as plans for interest only payments or capital repayment. If the property you are purchasing is located in the UK, an HSBC landlord mortgage might be the perfect solution for your investment property financing needs.
If you're interested applying for an HSBC buy to let mortgage, you'll be required to get a standard valuation of the property. The maximum loan to value is 75 percent, so you'll need to make a down payment of at least 25 percent of the lower of the purchase price or the valuation. The maximum dollar amount for any HSBC landlord mortgage is £1 million, and the minimum amount is £25,000. If you opt for a capital repayment buy to let mortgage, you'll have up to 25 years to repay the loan. For interest only options, the maximum term is 15 years.
Prior to approving buy to let mortgages, HSBC also evaluated the rental income expected on the property. The lender requires that rental income for any buy to let property financed be at least 130 percent of the mortgage payments, to account for management agents fees and other expenses associated with letting property. HSBC also requires that properties it funds be either company lets or be leased under Assured Shorthold Tenancies (AST)s. Further, HSBC requires that its loan be the property's first legal charge.
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