International

HSBC UK to offer international BTL mortgages to brokers

HSBC

The expansion aims to assist more than 23,000 mortgage brokers in facilitating UK property investments for residents across 14 countries and regions

HSBC UK has announced that it will offer international BTL mortgages to brokers for the first time.

The expansion aims to assist more than 23,000 mortgage brokers in facilitating UK property investments for residents across 14 countries and regions.

The bank is extending its services to residents from Egypt, Malaysia, the Philippines, Qatar, and Taiwan, enabling them to invest in the UK property market through BTL and residential mortgages. Residents from Australia, Hong Kong, Singapore, Switzerland, the UAE, the USA, Guernsey, the Isle of Man, and Jersey can also access HSBC UK’s international services.

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, according to Chris Pearson, head of intermediary mortgages at HSBC UK.

That is why the introduction of an international BTL offering, along with 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, he said.

As per HM Revenue & Customs data, investments in the UK property market by international investors rose in 2023, with foreign buyers accounting for 1.4% of all property transactions in the year ending March 2023, a 20% increase from the previous year.

The rise in investment by non-UK residents comes as the private rental sector grapples with supply and demand challenges, driving up rental prices, with the ONS reporting a 6.2% increase in the UK’s annual private rental prices earlier this year.

As per Emma Hollingworth, head of specialist lending at HSBC UK, investment into the UK property market by overseas investors can help with keeping the important balance of supply and demand, potentially helping keep a lid on rental prices.

We are excited to be expanding availability of our international BTL mortgages to brokers in addition to accepting applications from residents in five more countries, she said. With demand for rental properties remaining high, we hope our expansion in the international BTL market could open up new mortgage corridors and support growth in the private rented sector; while at the same time being a stable investment for our international customers.

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