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.

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 6.99% effective from 1 March 2023 and for Buy to Let mortgages (which is referred to as either the HSBC Buy to Let Variable Rate or as the HSBC Standard Variable Buy to Let Rate) is 7.1% effective from 3 April 2023. 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 during your fixed-rate period. You can book a new fixed rate up to 180 days before this period ends. That way, you avoid spending time on our Standard Variable Rate after your rate has expired and, as long as you don’t want to leave your existing fixed rate early, you won't incur early repayment charges.

If you have a tracker rate mortgage or a variable rate mortgage linked to the Bank of England base rate, the amount you pay may change when there are changes to the base rate.

If your mortgage is on our Standard Variable Rate, the amount you pay may change when this rate changes.

We’ll let you know if your interest rate changes and what effect that change will have on your monthly payments.

You can switch to a new rate if you’re on:

• a tracker rate
• a variable rate linked to the Bank of England base rate
• our Standard Variable Rate

You can do this without incurring an early repayment charge and with fee-free rate options.

Details about our current mortgage rates are online or you can give us a call on 0800 169 6333. Our lines are open Monday to Friday 08:00 to 20:00, Saturday and Sunday 09:00 to 17:00. We may monitor and record calls. Opening hours may vary.