HSBC UK opens international BTL mortgages to brokers

HSBC UK is for the first time providing brokers with access to its international buy-to-let (BTL) mortgages, the bank has announced.

The expansion of availability will help more than 23,000 mortgage brokers facilitate UK property investments for residents across 14 countries and regions.

The bank also expanded availability of its international BTL mortgages by offering residents from an additional five countries – Egypt, Malaysia, Philippines, Qatar and Taiwan – the option to invest in the UK property market through BTL and residential mortgages with HSBC UK.

Australia, Hong Kong, Singapore, Switzerland, UAE, USA, Guernsey, Isle of Man and Jersey can also access the bank’s international services.

Chris Pearson, head of intermediary mortgages at HSBC UK, said: “Our broker partners provide us with a critical barometer around how we shape our proposition in order to help even more customers with their mortgage needs.

That’s why the introduction of an international Buy-To-Let offering, plus the incorporation of another five countries to our roster, will be a great addition to their suite of products.

“With HSBC’s global heritage, we are ideally placed to support our brokers in this market segment.”

Investments in the UK property market by international investors increased in 2023 with HM Revenue & Customs (HMRC) data stating that foreign buyers accounted for 1.4% of all property transactions in the year ending March 2023 – an increase of 20% on the previous year.

This increase in investment by non-UK residents came as the private rental sector (PRS) faces challenges with supply and demand, with rental prices increasing at pace.

Data from the Office for National Statistics (ONS) show the UK’s annual private rental prices rose by 6.2% in the 12 months to January 20241.

Emma Hollingworth, head of specialist lending at HSBC UK, said: “Investment into the UK property market by overseas investors can help towards keeping the important balance of supply and demand, potentially helping keep a lid on rental prices, which is important at a time when cost of living challenges are still with us and maintaining financial resilience is key.

“We are excited to be expanding availability of our international Buy-to-Let mortgages to brokers in addition to accepting applications from residents in five more countries.

“With demand for rental properties remaining high, we hope our expansion in the international Buy-to-Let market could open up new mortgage corridors and support growth in the private rented sector; whilst at the same time being a stable investment for our international customers.”