The lender has brought its lending rules for foreign nationals in line with those for UK residents who apply directly to the bank.
This follows a change HSBC made in September regarding mortgages obtained through a broker.
HSBC’s standard policy requirements apply where one customer on an application has indefinite leave to remain. This is a change from the previous policy, where both customers on an application needed indefinite leave to remain in the UK or EU settled status.
This will be available on applications up to 95% loan to value (LTV) where at least one applicant has indefinite leave to remain in the UK, up from 75% LTV previously.
Gifted deposits will also be considered where at least one applicant has indefinite leave to remain.
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Where all applicants do not have indefinite leave to remain, have lived in the UK for one year or more, or earn £75,000 or more for a sole application or £100,000 or more for a joint application, further changes have been made.
This includes a higher LTV of 85%, up from 75%, and allowing borrowing to be used for debt consolidation.
This means both UK and foreign nationals can apply for lending to help consolidate debt.
UK rates now will apply, a change from the previous policy where foreign national borrowers living in the UK for fewer than 12 months were subject to non-resident rates.
Deposits must be from the applicant’s own resources.
Oli O’Donoghue, director of mortgage lending at HSBC UK, said: “Our position as a truly international bank gives us a great insight into the wants and needs of international customers coming to the UK.
“Homeownership is a dream for many customers and that is also true for those moving to the UK, whether that is a longer-term or permanent move or something shorter term and temporary. Aligning our UK policies to international customers who want to come to us directly for a mortgage will help more people achieve their home buying aspirations.”
SVR cut
HSBC UK has also made a 0.25% reduction to its standard variable rate (SVR) for residential mortgages – now at 6.74%.
The lender said this was its lowest SVR since January 2023 and would result in lower mortgage payments for affected borrowers.
O’Donoghue added: “We are firmly focused on helping people achieve their homeownership goals, including offering them great service alongside competitive rates.
“Following a review, we are reducing our SVR to 6.74%, which will benefit those customers who have chosen to transition onto an SVR after their fixed rate term has finished.”
