HSBC UK has recently unveiled significant improvements to its buy-to-let (BTL) mortgage range, offering greater flexibility and borrowing power for landlords and property investors. The latest updates about HSBC buy-to-let mortgage products are an exciting development in a market that has taken a bit of a battering over the last few years. In this article I will run through the changes to buy-to-let mortgage products and also new changes to some commercial mortgage lending in the UK.
HSBC Buy-to-Let Mortgage: Key Changes
One of the most notable updates is the increase in the maximum LTV to 80% for loans of up to £400,000. This change allows landlords to access higher borrowing amounts with a reduced deposit, making property investment more attainable. The new range includes a competitive five-year fixed rate at 5.00% with a £1,999 fee.
Rate Cuts Across Residential Mortgages
In addition to buy-to-let mortgage enhancements, HSBC UK will also reduce rates on its residential mortgage range across all LTVs and buyer types. Effective from tomorrow, the following reductions will be introduced:
- Up to 0.20% reduction on two-year fixed rate mortgages.
- Up to 0.17% reduction on five-year fixed rate mortgages.
Highlights include:
- The 90% LTV two-year fixed rate for home purchases and first-time buyers will be reduced by 0.14% to 4.85% with a £999 product fee.
- The fee saver equivalent will be reduced by 0.20% to 5.12%.
- Both deals come with a standard £250 cashback.
- Premier customers remortgaging can now access rates from 4.11% for 60% LTV with a £999 fee.
Competitive Market Moves by YBS Commercial Mortgages
Adding to the competitive landscape, YBS Commercial Mortgages has also reduced rates by 0.10% across its buy-to-let product range. Key highlights include:
- Five-year fix at 5.30% (down from 5.40%) for loans under £1 million up to 65% LTV with a 2% fee.
- For larger loans over £1 million, a five-year fix at 5.15% (down from 5.25%) is now available, also up to 65% LTV.
- Specialist BTL products, including holiday lets and houses in multiple occupation (HMOs), have also seen a 0.10% rate reduction.
For example:
- Holiday let mortgages now offer a 5.60% five-year fix (down from 5.70%) for loans up to £1.5 million per unit, up to 75% LTV, with a 2% fee.
- HMO mortgage rates have dropped to 5.65% (down from 5.75%) for loans over £500,000, up to 65% LTV, with a 2% fee.
The UK Buy-to-Let Mortgage Market
Buy-to-let mortgages, rules, and regulations are constantly changing. That is why it is essential for landlords and investors to carefully consider their options with a specialist buy-to-let mortgage broker. Factors such as loan-to-value ratios, interest rates, and associated fees can significantly impact long-term profitability. Securing the right mortgage is not just about finding the lowest rate but also ensuring the terms align with investment goals. Our expert advisors at Oportfolio Mortgages provide tailored guidance, helping you to secure the most suitable deal for your circumstances. Whether you’re a seasoned investor or entering the buy-to-let market for the first time, we’re here to help. For more information or to arrange a consultation, contact Oportfolio Mortgages today.
