HSBC offers buy-to-let mortgages for eligible non-UK residents looking to purchase or remortgage investment property in the UK.
This can provide an option for British expats, foreign nationals and other overseas investors who live outside the UK but want to invest in the UK rental property market.
However, HSBC’s international buy-to-let criteria differ from its standard UK-resident buy-to-let requirements. Your country of residence, income, deposit, property value, existing property portfolio and expected rental income can all affect whether you qualify.
Quick Answer
HSBC currently considers international buy-to-let applications from residents of a specified list of approved countries and regions. Applicants generally need a basic annual income of at least £50,000, increasing to £75,000 for self-employed applicants. A deposit of at least 25% is normally required, increasing to 40% for mortgages above £1 million. Other lending and property criteria also apply.
In this guide, we explain who can apply for an HSBC expat buy-to-let mortgage, the current lending criteria, deposit requirements, rental affordability and how international BTL applications work.
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What Is an HSBC International Buy-to-Let Mortgage?
An HSBC international buy-to-let mortgage allows an eligible person living outside the UK to obtain a mortgage on a UK property that will be rented to tenants.
It is therefore important to distinguish an international or expat buy-to-let mortgage from a mortgage used to buy a property overseas.
This HSBC proposition is primarily about eligible non-UK residents obtaining finance for property located in the UK.
For example, a British expat living in Dubai who wants to purchase an investment property in London may require an international buy-to-let mortgage because they are not resident in the UK.
Similarly, an eligible foreign national living overseas may potentially use an international BTL mortgage to purchase a UK investment property, subject to the lender’s criteria.
Living overseas can make the application more complicated because the lender may need to assess foreign income, overseas credit commitments, residency and documentation alongside the usual buy-to-let considerations.
Which Countries Does HSBC Accept for International Buy-to-Let Mortgages?
HSBC does not currently accept international mortgage applications from residents of every country.
For a non-UK resident application, the borrower must live in one of HSBC’s approved countries or regions.
At the time of writing, HSBC lists:
- Australia
- Egypt
- Guernsey
- Hong Kong
- Isle of Man
- Jersey
- Malaysia
- Philippines
- Qatar
- Singapore
- Switzerland
- Taiwan
- United Arab Emirates (UAE)
- United States of America (USA)
Additional requirements can apply depending on the country and the applicant’s circumstances.
Because international lending criteria can change, borrowers should check the current HSBC requirements for their country of residence before making an application.
Some countries and applicants are subject to additional requirements. HSBC’s international lending criteria can change, so the requirements applicable to your country of residence should be checked before applying.
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What Are HSBC’s International Buy-to-Let Mortgage Criteria?
HSBC applies specific eligibility requirements to non-UK resident buy-to-let applications.
Minimum Income
HSBC currently states that non-UK resident applicants need a basic annual income of at least £50,000, increasing to £75,000 for self-employed applicants.
The applicant’s wider income circumstances and supporting evidence will still form part of the assessment.
Deposit and Loan-to-Value
International buy-to-let applicants generally need a deposit of at least 25% of the property’s value, equivalent to a maximum mortgage of 75% loan-to-value.
For mortgages above £1 million, HSBC currently requires a deposit of at least 40%.
For example, on a £500,000 UK investment property, a 25% deposit would be £125,000, leaving a £375,000 mortgage.
Country of Residence
Applicants must live in a country or region currently accepted by HSBC for its non-UK resident mortgage proposition.
UK Investment Property
The mortgage is used to finance an eligible buy-to-let property in the UK. It should not be confused with obtaining an HSBC UK mortgage to purchase an investment property located overseas.
Rental Income
As with other buy-to-let mortgages, the expected rent from the property is an important part of the lending assessment.
HSBC’s international intermediary guidance states that international BTL applications are assessed on a rental-funded basis, subject to the lender’s rental affordability requirements.
Existing Buy-to-Let Portfolio
HSBC also places restrictions on the number of mortgaged buy-to-let properties a borrower can hold within its BTL proposition, so landlords with larger portfolios may need to consider alternative lenders.
All applications remain subject to HSBC’s full lending, affordability, credit and property criteria.
How Much Can I Borrow With an HSBC International Buy-to-Let Mortgage?
The maximum mortgage available will depend on several factors rather than simply being calculated as a multiple of your personal income.
For a buy-to-let application, the expected rental income from the property plays an important role in determining how much the lender is prepared to advance.
HSBC assesses whether the property’s expected rent provides sufficient coverage against a stressed mortgage payment.
The maximum loan can also be restricted by the applicable loan-to-value limit.
For example, even if the rental income supports a larger mortgage, a 75% maximum LTV would ordinarily limit borrowing on a £600,000 property to £450,000.
International borrowers may also have overseas financial commitments and income in foreign currencies that need to be considered as part of the wider application.
This is why two investors buying similarly priced UK properties can receive very different mortgage outcomes.
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Can I Remortgage a Buy-to-Let Property to HSBC?
Potentially, yes.
HSBC offers buy-to-let mortgages for both property purchases and remortgages, subject to its current lending criteria.
Its international mortgage proposition can also accommodate eligible non-UK residents, meaning an overseas landlord with an existing UK investment property may potentially be able to remortgage rather than only use HSBC when purchasing.
Reasons a landlord might consider remortgaging include:
- reaching the end of an existing mortgage deal;
- reviewing the interest rate or mortgage structure;
- changing lender;
- raising additional funds where permitted; or
- restructuring an existing UK property investment.
For an international landlord, a remortgage application will still need to meet the relevant residency, income, rental affordability, property and loan-to-value requirements.
If you live overseas and already own a UK rental property, we can assess whether HSBC or another international buy-to-let lender is suitable for the remortgage.
Does HSBC Accept Foreign Currency Income for International Mortgages?
HSBC can consider income received in a range of foreign currencies for eligible international mortgage applications.
This is particularly relevant for British expats and foreign nationals who are paid outside the UK but want to purchase or remortgage UK property.
Foreign currency income introduces additional considerations because the lender needs to establish the applicant’s income in sterling terms and assess it in accordance with its foreign currency lending criteria.
The currency, source of income, employment status and country of residence can therefore all affect an application.
For international borrowers, establishing whether both the country of residence and currency of income are acceptable should be done before progressing too far with a UK property purchase.
Does HSBC Offer International Buy-to-Let Mortgages Through a Limited Company?
Investors searching for HSBC buy-to-let mortgages often want to know whether they can purchase through a limited company or special purpose vehicle (SPV).
This needs to be distinguished from a company director using income from their business to support an individual mortgage application.
Eligibility for an international buy-to-let mortgage will depend on the ownership structure accepted by the lender as well as the applicant’s residency, income and property circumstances.
If you intend to purchase UK investment property through a limited company, it is important to establish which lenders accept that structure before choosing a mortgage.
Oportfolio works with a range of buy-to-let lenders that consider limited company applications, so an HSBC mortgage is not the only option available to international property investors.
What Documents Might I Need for an International Buy-to-Let Mortgage?
International mortgage applications can require more evidence than a straightforward UK-resident mortgage.
Depending on your circumstances, you may need to provide evidence relating to:
- identity and overseas address;
- employment or self-employed income;
- foreign currency income;
- existing mortgages and credit commitments;
- the source of your deposit;
- existing rental properties and rental income;
- the proposed UK investment property; and
- overseas credit history or credit reports where required.
The exact documentation depends on the application.
Preparing the appropriate documents before submission can help reduce unnecessary delays, particularly where evidence needs to be obtained from another country.
Oportfolio Insight
From our experience working with international and more complex mortgage applications, the first question should not simply be “Does HSBC offer international buy-to-let mortgages?”
The more important question is whether HSBC’s criteria work for the individual investor.
Country of residence, currency of income, employment status, property value, deposit, expected rent and existing UK property portfolio can all affect lender choice.
An applicant may satisfy HSBC’s headline international eligibility requirements but find that another lender provides a better fit for the property or their wider circumstances.
We therefore assess the borrower and proposed investment before determining whether HSBC or another international buy-to-let lender is likely to be the most appropriate route.
Speak to an International Buy-to-Let Mortgage Adviser
If you live overseas and want to purchase or remortgage a UK investment property, HSBC is one of the lenders that may be able to consider your application.
However, international buy-to-let criteria vary considerably between lenders.
At Oportfolio Mortgages, we can assess your country of residence, income, deposit, expected rental income and property circumstances before comparing suitable international buy-to-let mortgage options.
This can help establish whether HSBC’s criteria are suitable or whether another lender provides a better solution for your circumstances.
