HSBC Buy to Let Mortgage: What Landlords Should Know

Landlords

Posted in Oct 13 , 2025

As interest rates begin to settle and the UK rental market remains strong, many landlords and property investors are once again eyeing new opportunities. Among the big high street lenders, HSBC’s buy-to-let mortgage range continues to attract attention, especially following recent updates to its lending criteria and competitive fixed-rate deals.

If you’ve been wondering whether an HSBC buy to let mortgage is right for you, here’s everything you need to know, from eligibility and rates to how these mortgages fit into the 2026 housing market.

What Is an HSBC Buy to Let Mortgage?

An HSBC buy to let mortgage lets landlords purchase or remortgage a property they intend to rent out. Unlike a standard residential mortgage, a buy-to-let loan considers your expected rental income rather than just your personal salary. HSBC offers both fixed-rate and tracker-rate options, giving landlords flexibility depending on how they expect the market to perform.

In 2025, HSBC continues to focus on stability and affordability. With base rates steadying and inflation easing, the bank has introduced more competitive two- and five-year fixed buy to let rates, helping landlords secure predictable monthly payments.

What’s New in 2025?

According to recent updates from the lender, HSBC has relaxed some of its affordability tests, making it slightly easier for investors with solid rental yields to qualify. They’ve also improved their remortgage options, allowing existing landlords to switch to better rates or release equity to expand their property portfolios.

Another positive sign is that HSBC has been re-entering the market for limited company buy to let mortgages, a move welcomed by experienced investors who prefer holding property through a business structure for tax efficiency.

This shift shows HSBC’s confidence in the UK rental sector, which remains resilient despite high living costs and changing regulations.

Key Features of HSBC’s Buy to Let Mortgages

If you’re comparing options, here’s what stands out about HSBC’s buy to let mortgage products in 2025:

Loan-to-Value (LTV) ratios up to 75%, meaning you can borrow up to three-quarters of the property’s value.
Flexible term lengths ranging from 5 to 35 years.
Interest-only or capital repayment options.
Now our rental income must be at least 125% of the monthly mortgage payment.
Early repayment flexibility, though charges may apply on fixed-rate deals.

Whether you’re a first-time landlord or managing several properties, these features make HSBC a solid contender among high-street lenders.

Who Can Apply?

To qualify for an HSBC buy to let mortgage, you’ll need to meet certain criteria:

You must already own your own home.
Your minimum income should usually be £25,000 per year.
The property value should be at least £75,000.
You can have a maximum of three buy-to-let properties, including the one you’re applying for.

HSBC also runs a credit and affordability check to ensure your personal finances and expected rental income can sustain the loan.

Why Landlords Choose HSBC

Many landlords prefer HSBC buy to let mortgages because of the bank’s long-standing reputation, transparent terms, and online management tools. With digital applications, quick valuations, and a strong customer support team, HSBC simplifies the process compared to smaller lenders.

Another reason is stability. HSBC is known for its consistent lending policies, which give landlords peace of mind amid changing market rules and tax adjustments.

Moreover, with remortgage cashback incentives and competitive rates for existing HSBC customers, the bank continues to offer appealing packages for both new and experienced investors.

Is Now a Good Time to Get a Buy to Let Mortgage?

Financial experts believe 2025 could mark a turning point in the UK buy-to-let market. With the Bank of England holding base rates steady and inflation easing, mortgage costs are beginning to stabilise.

For landlords, this means the chance to lock in better fixed-rate deals whilst rental demand continues to rise, particularly in major cities such as London, Manchester, and Birmingham.

If you’re considering expanding your property portfolio or refinancing an existing loan, an HSBC buy to let mortgage could help you maximise returns and future-proof your investment.

Tips Before You Apply

Before applying, it’s wise to:

Get help from estate agents like Cribs Estates for your rental yield review and ensure it meets HSBC’s coverage requirements.
Compare fixed vs. tracker rates based on your risk.
Check for early repayment fees.
Consider getting advice from an independent mortgage broker who understands landlord lending.

Even slight differences in rate or term can significantly impact long-term profitability, so expert guidance always helps.

Final Thoughts

Choosing the right HSBC buy-to-let mortgage can shape the success of your property investment. At Cribs Estates, we help landlords and investors make smart, confident decisions, whether it’s securing a mortgage, managing tenants, or maximising returns. Our local expertise ensures your property journey stays profitable, compliant, and completely stress-free.

Shared on social media

Comments

Enquiry form

Latest Blogs

Short Term Lets London: 1, 2, & 6 Month Rental Options Explained

London is among the busiest and most traditional cities in the world, so the demand for short-term lets in London for 1, 2, and 6 months is always high. Whether someone is relocating for work, waiting for property sale completion, or spending some short time in the city, landlords have now started to explore short-term and medium-term agreements as the best way to maximise occupancy time. This guide helps landlords and renters to know everything about short-term lettings in London, along with pricing expectations. How Many Short-Term Lets Are in London?These stays usually fall under:Short-term licences (1–2 months) for temporary work placement or relocation. Medium-term lets (2–6 months) for professionals and students. Short AST agreements (usually for 6 months) for living without a yearly contract.Is It Legal to Offer Short-Term Lets in London? London has a 90-day rule for holiday lets, which applies to nightly or weekly-style Airbnb accommodations. Properties in Greater London cannot be let for more than 90 days in a calendar year as short-term stays unless the landlord has planning permission. But for 1-6 month short-term lets, the rules are totally different: They typically follow a licence or AST agreementThey are considered residential stays, not holiday letsThe 90-day restriction does not applyNormal landlord regulations still must be followedLandlords must ensure:Gas and electrical safety certificatesDeposit protection (for ASTs)Right-to-Rent checksCouncil tax arrangementsProperty licensing is required in that boroughWho Uses Short-Term Lets in London?Typical users include:Professionals on project-based contractsStudents and interns staying for a semesterRelocating families waiting for their permanent homePeople between moves, such as after selling a propertyInternational arrivals needing accommodation while settlingCorporate travellers on short assignmentsCost for 1, 2, and 6 Month Lets in LondonPrices usually vary by borough, property size, and whether the bills should be included. In general, the cost includes: 1 Month Rental LondonShort stays are usually furnished and may include bills. Expect higher monthly costs due to flexibility and convenience.2 Months Let LondonOften slightly cheaper per month than 1-month stays because landlords prefer multi-month occupancy.6 Month Rental LondonThis is the most common type of short-term let and usually follows a standard AST agreement. Costs become more similar to long-term rentals but with greater flexibility.Typical factors affecting price include:Zone 1 & 2 properties cost significantly moreFurnished and fully serviced flats cost more than basic rentalsBills included can raise the monthly priceDemand in boroughs like Canary Wharf, Wimbledon, Clapham, and Kensington tends to stay highTenants should always check:If bills are includedWhether the stay is extendableDeposit termsInventory conditionMove-in fees (if any)Benefits of Short-Term Lets for RentersNo long-term commitmentFurnished and ready to move inBills often includedFaster approval process than long-term tenanciesAbility to extend or shorten stay in many casesBenefits for Landlords Offering Short-Term LetsHigher rental yields, especially in furnished flatsLower risk, as many tenants pay upfront for short staysGreater control over tenancy cyclesFlexibility to use the property between staysAbility to adjust pricing based on demandLandlords must still comply with licensing and safety rules, and reliable estate agents like Cribs Estates can help get higher rents compared to standard long-term lets.Best Areas in London for Short-Term LetsCanary Wharf for financial district workersCentral London for tourists, corporate travellersStratford for tech and business hubWimbledon, Morden, and Clapham are popular with families and commutersHammersmith & Fulham has excellent transport linksKensington & Chelsea for premium short-term clientsHow Cribs Estates HelpsCribs Estates specialises in short-term lets across London, offering flexible rental options for 1, 2, and 6-month stays. We support both tenants and landlords by:Providing fully vetted short-term and medium-term rental propertiesManaging the legal requirements and paperworkMatching landlords with reliable tenants quicklyEnsuring smooth move-in and move-out processesOffering furnished and part-furnished optionsWhether you are searching for a comfortable short stay or looking to let your property on a flexible basis, Cribs Estates ensures a seamless, compliant, and stress-free experience.

Renters Rights Bill Section 6B Loophole Explained

After the Renters’ Rights Bill, the UK rental sector continues to reshape; however, there is one clause that is still the centre of debate: Section 6 B. People are discussing the loopholes of this section, raising concerns about its usage or misuse by landlords and what it could mean for renters’ security. With so much discussion and confusion about Section 6B, this guide explains the issue in clarity and what it means for both landlords and tenants. What Is Section 6B in the Renters' Rights Bill? Section 6B is a clause that is linked with transitioning from a fixed-term tenancy to a periodic tenancy. The goal of the Renters’ Rights Bill is to ensure all future tenancies are periodic by default and give tenants the flexibility to move easily, and protect them from unfair eviction. In Section 6B, there are some scenarios where the landlord can recover possession of the property. These scenarios include: The landlord or a close family member needs to live in the property The landlord needs to sell the property Legal obligations requiring the landlord to regain possession The intention behind Section 6B is fairness: landlords retain essential rights whilst renters receive clearer notice periods and greater overall protection. What People Mean by the “Section 6B Loophole” In the market, the “section 6B loophole” is often described as a potential gap in the legislation that might allow some landlords to remove tenants more easily than intended. The concern is based on two main ideas: Landlords could claim they intend to sell the property:Even if the sale does not happen immediately, tenants worry that this creates a route to end the tenancy earlier than expected. Landlords could claim they need to move back into the home:People argue that intention is difficult to prove, creating fears of misuse. What Section 6B Actually Allows Section 6B is not a straightforward permission for landlords to evict tenants at will. The Bill’s wording is supported by additional clauses that outline: Clear Notice Periods Landlords must provide the proper legal notice, which ensures tenants have time to find alternative accommodation. Evidence Requirements Although it is not finalised, past legislative and parliamentary notes suggest that landlords may need to provide proof of intention, such as valuations, legal documents, or statements of legitimate need. Restrictions on Repeat Use A landlord who claims a Section 6B ground, such as moving in, may be prevented from re-letting the property for a specified period, which reduces incentives to misuse the rule. Potential Tribunal Challenges Tenants retain the ability to challenge unfair possession claims. If a tribunal finds misuse, penalties or restrictions may apply. Why Section 6B Feels Like a Loophole? 1. Overlapping Clauses Government Bills often leave areas flexible until secondary regulations are published, which creates uncertainty. 2. Tenant Security and Landlord Rights Tenants want long-term security; landlords need the ability to sell, move back, or manage their properties. It can be misused by both in certain ways 3. Past Experiences With Section 21 Because of Section 21, "no-fault" evictions are being abolished, so some renters fear any new type of possession ground may become a replacement for them. How Tenants Could Be Affected Renters may experience some practical challenges stemming from Section 6B, such as: Greater uncertainty during transitional periods, whilst the Bill is being implemented Confusion over notice periods and how they differ from current rules Concerns about the legitimacy of a landlord’s stated reason for seeking possession However, renters also have substantial protections: Written notice must always be provided Tenants can legally challenge grounds believed to be misused Landlords must follow strict legal processes Repeat misuse is restricted or penalised Overall, the clause does not remove tenant rights; it changes the structure of how possession is granted. Cribs Estates Ltd can help the renters clear all confusion and utilise the clause in the best way. How Section 6B Impacts Landlords For landlords, Section 6B offers the right flexibility when they: Need to move back into a property due to family changes Sell a property to deal with financial or legal obligations End a tenancy where renovation or legal compliance requires possession Landlords must still: Provide the correct notice Ensure the reason is genuine Comply with the broader Renters’ Rights Bill Provide evidence if challenged Failure to follow the rules could lead to penalties, tribunal disputes, or restrictions on future letting. What the UK Government Has Said So Far The Bill is undergoing review and amendments. As per parliamentary discussions: Penalties for misuse could be increased Clarifications will likely be included to reduce debatable areas Tenant safeguards remain a priority Is There Really a Renters’ Rights Bill Section 6B Loophole? In reality, Section 6B is not a loophole, but a grey area due to early drafting. The grounds used for possession are legitimate and are already in use in many European tenancy legislations. Cribs Estates Ltd helps landlords and tenants to avoid misuse of any legal rules so it can be challenged in case it's unfair. The debate will continue until the Bill’s final version is published, but for now, Section 6B remains a balanced part of a much larger reform effort by the government to ensure tenants don't have to face unfair evictions. Read More: hmo property management london

How Much Is a Service Charge on a Flat UK and What’s a Reasonable Amount?

The fee for service charges can vary depending on the building, location, and the level of maintenance needed. Buyers often get surprised when they realise how much the annual cost can be important in the affordability and long-term budgeting. When considering a property decision, understand how much the service charge is for a flat in the UK and what counts as a reasonable service charge in this blog. What Is a Service Charge on a Flat in the UK?A service charge is a fee paid by leasehold flat owners to cover the cost of building maintenance. Unlike freehold houses, the flat share areas and shared responsibilities, such as a managing agent, will require funds to maintain the property. A service charge typically covers:Cleaning and upkeep of communal hallwaysLift maintenanceGardening and communal groundsFire safety and emergency lightingRepairs and building maintenanceBuildings insuranceManaging agent feesReserve or sinking fund for major worksHow Much Is a Service Charge on a Flat in the UK?As per government and leasehold advisory statistics:National average: £1,100 – £2,500 per yearLondon average: £2,000 – £4,000+ per yearNew-build developments: £3,000 – £7,000 per yearLuxury or high-amenity buildings: £5,000 – £10,000+According to the Competition and Markets Authority (CMA), complaints about unreasonable or unclear service charges are among the top issues faced by UK leaseholders. This is partly due to rising costs, especially in buildings with lifts, concierge services, gyms, or ageing structures requiring regular repairs.What Is a Reasonable Service Charge on a Flat?A reasonable service charge does not have a fixed number, but UK leasehold law defines it under the Landlord and Tenant Act 1985. Service charges must be:1. Fair and ProportionateThey must reflect genuine costs for maintenance, insurance, and services the building actually receives.2. Supported by EvidenceLeaseholders are legally entitled to see invoices, receipts, and annual accounts.3. Related to the Services ProvidedYou should not pay for services that do not benefit your building.4. Subject to Consultation for Major WorksIf work exceeds £250 per leaseholder, a Section 20 consultation is required.Factors That Influence Service Charge Amounts1. LocationLondon and the South East typically have the highest charges due to maintenance costs and property values.2. Age and Condition of the BuildingOlder buildings may require more frequent repairs.New-builds often have expensive private amenities.3. Size of the BlockLarger developments often split costs across more residents, reducing charges. Smaller buildings may have higher per-flat charges.4. Facilities and AmenitiesLifts, gyms, concierge desks, and CCTV dramatically increase costs.5. Reserve (Sinking) FundA building may collect extra funds for future major works such as roof replacements, external repainting, or structural repairs.Signs You’re Paying an Unreasonable Service ChargeThe building is poorly maintained despite high charges (Dirty hallways, broken lifts, or neglected gardens are red flags).You never receive a clear annual breakdownCosts rise sharply without explanationYour charges are higher than similar buildings nearbyYou cannot access invoices or receipts when requestedWhat Can Flat Owners Do?1. Request Full Accounts and Supporting DocumentsYou can ask for invoices, receipts, and a full service charge breakdown.2. Challenge the Charge at the First-tier TribunalThe Property Chamber can rule whether a charge is reasonable.3. Exercise the Right to Manage (RTM)Leaseholders can take over management from the freeholder if standards are poor.4. Complain Through a Redress SchemeManaging agents must be part of an approved government scheme, such as:The Property OmbudsmanThe Property Redress SchemeHow Cribs Estates Helps Leaseholders?We help:Buyers understand the true cost of ownership by reviewing service charge history and potential risks.Landlords calculate rental yield properly through annual service charge expenses.Sellers prepare clear service charge documents to reassure potential buyers.Leaseholders gain clarity if charges are reasonable for their building and area.FAQs About Service Charges1. Do tenants ever pay service charges?Tenants do not pay service charges directly unless stated in the tenancy agreement. Most commonly, landlords absorb these costs.2. Can service charges increase every year?Yes. Service charges can fluctuate depending on maintenance needs, inflation, insurance costs, and major works.3. Are service charges different for landlords buying a second property?No. Service charges are the same regardless of whether the flat is owner-occupied or used as a buy-to-let.Read More: can an individual put a charge on a property

Stamp Duty on Second Property Explained

If you are planning to buy a second home or invest in property in the UK, there are several costs that buyers often overlook. The most important of these is the stamp duty on a second property, which is a central talking point among landlords, investors, and those looking to purchase holiday homes. The HMRC rules update, rising prices, and the latest SDLT bands have made it necessary to understand what is owed before any commitments.This guide will help landlords break down everything, including current rates, refund rules, and how they affect returns on investment. What Counts as a Second Property for Stamp Duty?As per HMRC, you will need to pay higher stamp duty land tax (SDLT) when you already own another home anywhere in the world and you’re buying an additional residential property, which may include: Buy-to-let propertyA holiday homeA second home purchased whilst keeping your primary residenceInvestment flats bought for rental incomeA property purchased jointly if one buyer already owns a homeThe surcharge applies to any second home costing £40,000 or more, and below this threshold, SDLT does not apply.Updated Stamp Duty Rates for Second Homes (2025–2026)Second homes are subject to a 3% surcharge on top of the standard SDLT rates, officially called the Higher Rates for Additional Dwellings. Let’s see how it works:The standard stamp duty rate applies first.A 3% additional dwelling surcharge is added to each band.How Stamp Duty on Second Property Is Calculated (Examples)Let’s understand it with simple terms:Example 1: Buying a £300,000 Investment FlatStandard SDLT on a £300,000 home applies first.Then an extra 3% is added across the band.Total stamp duty may fall around £11,500–£14,000+, depending on the exact bands.Example 2: Buying a £550,000 Second HomeStandard rates apply across multiple bands.Add 3% surcharge.Final SDLT could exceed £28,000+.The total tax depends on property price bands, not a single rate.Can You Avoid or Reduce Stamp Duty on a Second Property?There are a few situations where stamp duty on a second property can be reduced or avoided completely, though these are limited and strictly regulated:Buying a property under £40,000Buying non-residential or mixed-use property (farmland, shops with flats)Replacing your primary residence and selling your original home within the HMRC windowCertain inherited properties (depending on ownership share)Stamp Duty Refunds When You Sell Your Main HomeMany buyers do not realise they may be due a refund. If you buy a new home whilst still owning your previous one, HMRC classifies the new one as a second property, meaning you must pay the higher rate. However, if you sell your original main residence within 36 months, you can claim a refund of the surcharge.Things to consider:Refunds must be claimed within 12 months of selling the original home, or within 12 months of filing your SDLT return, whichever comes later.Refunds apply only if the new property becomes your main residence.How Higher Stamp Duty Affects Landlords and InvestorsThe extra 3% can make the initial cost of a buy-to-let more expensive, which affects:Return on investment (ROI)Cash flow planningLong-term rental yield calculationsPortfolio expansion decisionsHowever, rental demand in the UK remains strong, especially in cities like London, Manchester, Birmingham, and university towns. Many landlords continue to invest because strong rents can offset the higher purchase costs over time.Common Mistakes in Stamp Duty on Second HomesMany buyers face unexpected issues because of misunderstandings about SDLT and lose thousands. Common mistakes include:Assuming joint purchases split ownership for SDLT (they do not)Not budgeting for the surchargeBuying through a company, thinking it reduces tax (it does not, companies still pay a surcharge)Failing to claim a refund within the HMRC time limitsMisunderstanding inherited property rulesHow Cribs Estates Helps Buyers and LandlordsCribs Estates specialises in:Understanding all costs involved, including SDLTComparing high-yield investment areasFinding properties that maximise rental incomeManaging legal compliance and purchase requirementsBuilding long-term property portfolios with proper tax planningWhether you are buying your first investment flat or expanding your property portfolio, we make the entire process simple, transparent, and stress-free.FAQs about Stamp Duty on Second Property1. Do overseas buyers pay extra stamp duty on second properties?Yes. Overseas buyers pay the 3% second-home surcharge, plus an additional 2% non-resident SDLT surcharge.2. Is stamp duty different if I buy a second property with someone else?If any person in the purchase already owns a home, the surcharge applies to the whole transaction, even if the other person is a first-time buyer.3. Does inherited property count as owning a home for SDLT?Yes, if you inherit more than a 50% share, it counts as an owned property under HMRC rules.Read More: https://www.cribsestates.co.uk/blog/how-much-are-letting-agent-fees-for-landlords-in-2026

Property search

Residential Lettings

Residential Sales

HMO

Commercial Sales Commercial Lettings

Price

Min price

Max price

Number of Bedrooms

Min bedrooms

Max bedrooms

Find properties