Buy-to-let rates

We know that when it comes to choosing a mortgage, there's a lot of jargon to get your head around. That's why we've listed some common mortgage terms here.

Loan-to-value (LTV)

This represents the percentage of the property value you want to borrow. For example, a £100,000 property with an £80,000 mortgage would be an 80% LTV. The maximum LTV we'll lend you depends on your individual situation, the property, the loan you choose and the amount you borrow.

Initial interest rate
This is the initial percentage rate at which we calculate the interest on the mortgage.

Variable rate
When your initial mortgage rate ends, the interest on your mortgage will be calculated using the HSBC Standard Variable Rate or HSBC Buy to Let Variable rate. This will vary over the term of the loan and is set internally. HSBC Standard Variable Rate and HSBC Buy to Let Variable Rate do not track the Bank of England base rate.

Initial interest rate period
This is the period during which the fixed or tracker rate applies. For fixed and tracker rate mortgages, when the specified period expires, the rate will revert to the HSBC Standard Variable Rate/Buy-to-let Variable Rate.

Annual Percentage Rate of Charge (APRC)
The APRC represents the overall cost for comparison and can be used to compare mortgages.

Booking fee
A fee charged on some mortgages to secure a particular mortgage deal.

Annual overpayment allowance (AOA)

You'll have an annual overpayment allowance for fixed-rate mortgages equivalent to 10% of the outstanding balance of your mortgage. This is calculated annually on the date your fixed-rate period started. You can make additional payments during the fixed-rate period without incurring an early repayment charge (ERC). Anything over the 10% will incur an ERC, which is a charge you may have to pay if you repay the whole or part of your mortgage early. This includes if you move to a different HSBC mortgage rate, or move to a different lender during your fixed period. There's no early repayment charge for tracker mortgages.

Fixed-rate mortgages

You'll have an annual overpayment allowance (AOA) equivalent to 10% of the outstanding balance of your mortgage. This is calculated annually on the date your fixed-rate period started.

You can make additional payments during the fixed-rate period without incurring an early repayment charge (ERC).

Anything over the 10% will incur an ERC, which is a charge you may have to pay if you repay the whole or part of your mortgage early. This includes if you move to a different HSBC mortgage rate, or move to a different lender during your fixed period.

The ERC is calculated as 1% of the amount repaid early, above any annual overpayment allowance, for each remaining year of the period during which the ERC applies, reducing on a daily basis. However, (after taking your allowance into account) a maximum of 5% of your overpayment will be charged.

Tracker mortgages

No early repayment charge

There's no early repayment charge, so you can make unlimited overpayments. And you could pay your mortgage off early.

Fixed-rate mortgages

When your fixed period ends the rate will move to the HSBC Standard Variable Rate, unless you switch your HSBC rate.

Tracker mortgages

The tracker mortgage will track the Bank of England base rate for a 2-year fixed period, then it will move to the HSBC Standard Variable Rate, unless you switch your HSBC rate.

Current standard variable rate

Our current standard variable rate for residential mortgages (which is referred to either as the HSBC Variable Rate or the HSBC Standard Variable Rate) is 3.54%, effective from 1st April 2020. These rates only apply when a fixed or tracker rate no longer applies.

The mortgage rate information on this page doesn't contain all of the details you need, so remember to read your individual mortgage illustration before you choose a mortgage.

To get your illustration, use our Find and Compare tool to generate an illustration for any of the mortgages shown. 

Your mortgage illustration sets out the details of all associated rates and fees for a mortgage. This is in the same format for all lenders to enable you to easily compare mortgages.

If you have a fixed-rate mortgage, you’ll continue to pay the same amount each month. When your fixed-rate period ends, we recommend you look around for the best deal. 

If you have a variable or tracker mortgage, the amount you pay may change just as it could today. Your mortgage rate will be based on the Bank of England base rate, plus a number of other factors. We’ll let you know if your interest rate changes. If you’re on a variable or tracker rate, you have the option of switching to a fixed-rate. You can do this with no fees or upfront costs. 

You can find details about our different mortgages online or give us a call on 0800 169 6333. Our lines are open Monday to Saturday 08:00 to 20:00, Sunday 09:00 to 18:00. Opening hours may vary.