HSBC makes BTL products cheaper to target amateur landlords

HSBC makes BTL products cheaper to target amateur landlords

 

The lender has cut the rates for its two and five-year fixed at 60 per cent LTV by 0.15 per cent to 2.09 per cent and 1.39 per cent, respectively.

For its BTL products at 75 per cent LTV its two-year fixed has been reduced by 0.15 per cent to 1.64 per cent and its five-year fixed has decreased by 0.1 per cent to 2.29 per cent.

The two-year fixed products which have seen rate cuts are subject to a £1,999 fee, while the five-year fixes have no fee.

Furthermore, to standardise its range with its residential offering, it has removed the £349 fee from BTL products to make them fee-free.

HSBC UK’s head of Buying a Home, Michelle Andrews (pictured), said reducing the rates and removing its product fee would make mortgaging and remortgaging significantly cheaper for amateur landlords or those growing small portfolios.

She added: “With a significant increased demand for rented properties, the BTL market has seen a sharp bounceback in recent months.

“With many people having changed their priorities during the Covid crisis and looking to move out of cities into new areas, renting is a great ‘try before you buy’ option, which is feeding BTL demand.”