HSBC Introduces International Buy To Let Mortgage Option

by | Tuesday 21st May 2024 | Mortgage News

HSBC introduces international buy-to-let mortgage options

HSBC introduces international buy to let mortgage options

HSBC has unveiled a new offering for international investors, introducing international buy to let mortgage option that caters to a diverse range of global buyers. This new product allows individuals residing in approved countries to apply for UK-based BTL mortgages under specific guidelines and criteria. This move is set to expand the investment opportunities for overseas buyers looking to capitalise on the UK property market. As whole of market mortgage brokers, we are lucky to be able to access these new products for prospective borrowers. Let’s take a look at the new exciting offerings from HSBC.

Which Approved Countries Can Use The New International Buy To Let Mortgage Products?

Of course, as a fairly high risk lending proposition, borrowers looking to use the new international buy-to-let mortgage products will need to meet several pieces of HSBC criteria. The main being that you must be a resident in one of their approved countries. The list of approved countries from which residents can apply includes Australia, Egypt, Guernsey, Hong Kong, Isle of Man, Jersey, Malaysia, Philippines, Qatar, Singapore, Switzerland, Taiwan, UAE, and the USA. Each country has unique stipulations to ensure compliance with HSBC’s lending policies. If you are unsure if you will be accepted, then please speak to your mortgage advisor and they will be able to check HSBC’s criteria for you.

Country-Specific Guidelines

Some of these approved countries do not have completely black and white criteria, meaning that there are some country-specific rules. Here is a list of their current criteria:

  • Australia: Residents can apply for BTL mortgages but cannot complete residential applications while physically located in Australia. Documents must not be sent to or signed at HSBC branches in Australia.
  • Qatar: Only existing HSBC customers can apply, with all standard criteria met prior to proceeding.
  • UAE: UAE nationals must have an annual income of at least 1 million AED and net equity/assets valued at a minimum of 5 million AED. Non-UAE nationals must meet all other relevant criteria.
  • USA: Compliance with the US Persons Policy is mandatory, with income in an acceptable foreign currency.

International Buy-To-Let Mortgage General Criteria

The general criteria set out by HSBC for their international buy-to-let offerings is as follows:

  1. Minimum income of £75,000 for a sole applicant, excluding variable and rental income.
  2. Minimum loan amount of £25,000, with additional borrowing available from £10,000.
  3. Loan terms range from a minimum of 5 years to a maximum of 40 years.
  4. Options for Interest Only or Capital Repayment.
  5. Lending is based on rental income only, with no maximum age limit, provided income evidence is maintained throughout the term.

If you do not meet this criteria and/or your country of residence or income is not acceptable, you will not be able to proceed with an application.

Positive Benefits for Borrowers

The introduction of these International BTL mortgages by HSBC opens a wide range of opportunities for overseas investors. In our eyes it allows for diversified investment portfolios and provides a stable income stream through UK rental properties. Something that is still a very strong investment compared to a lot of other countries. Investors can benefit from the robust UK property market, which has historically shown resilience and growth. Especially in areas like London, where our mortgage advice office is based.

Additionally, the flexible lending criteria, such as no maximum age limit and the option for Interest Only repayments, make these mortgages accessible and adaptable to various financial strategies and long-term investment plans.

Importance of Professional Mortgage Advice

While the benefits are substantial, navigating international mortgage applications can be complex. It is crucial for prospective borrowers to seek professional mortgage advice to ensure they understand all the requirements involved. Qualified mortgage brokers, such as the experts at Oportfolio Mortgages, can provide invaluable guidance, helping investors make informed decisions and streamline the application process. By consulting with a professional such as ourselves at Oportfolio, borrowers can ensure they are meeting all criteria and making the best financial choices for their circumstances, ultimately maximising the potential returns from their UK property investments.

If you are thinking of investing in international buy-to-let property in the UK and you think you might meet HSBC’s criteria, please feel free to drop us a message or give us a call. We are here to help.

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If you have any questions about UK mortgage news or or anything you’ve read then please get in touch. We’d love to hear from you.

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