HSBC UK has reduced its buy-to-let (BTL) affordability stress rates for domestic customers.
The move is a bid to give landlords greater borrowing flexibility, particularly for remortgaging and raising additional funds.
Under new stress rates, landlords are able to borrow more against the same rental income.
So at 80% loan-to-value (LTV), a landlord seeking to remortgage with monthly rental income of £1,290 would previously have borrowed £165,000.
Under the new stress rates, the same property can support 10% more borrowing of £184,000.
At 70% LTV, a landlord with monthly rental income of £1,814 would previously have been able to borrow £254,000.
Under the new rates, borrowing of £280,000 is possible, a 9% rise.
Oli O’Donoghue, head of mortgages at HSBC UK, says: “I’m pleased that we’ve been able to reduce our Buy-to-Let affordability stress rates to better support UK landlords.
“By lowering stress rates, we are helping more landlords enter or remain in the Buy-to-Let market.”
“This supports access to quality rental homes and housing affordability more broadly. Lowering barriers to finance, and easier refinancing options, can help landlords manage costs, supporting greater stability in the rental sector.”
