HSBC UK has announced a 0.25% reduction in its standard variable rate (SVR) for residential mortgages, bringing it down to 6.74%—the lowest since January 2023.
At the same time, the bank has significantly relaxed eligibility criteria for international borrowers, allowing greater flexibility for those looking to purchase property in the UK.
The move is expected to make homeownership more accessible to a wider range of applicants, including those without indefinite leave to remain (ILR).
By increasing loan-to-value (LTV) limits and expanding mortgage access, HSBC is positioning itself as a more inclusive lender in an increasingly competitive market.
HSBC Reduces Mortgage Rates Amid Market Shifts
HSBC’s decision to cut its SVR to 6.74% follows a review of its mortgage offerings, aimed at supporting homeowners transitioning from fixed-rate deals.
According to Oli O’Donoghue, director of mortgage lending at HSBC UK, this reduction will directly benefit borrowers who have moved onto an SVR after their fixed term expired.
The change comes as lenders respond to evolving housing market conditions, with some banks cautiously adjusting their rates despite persistent inflationary pressures.
While mortgage rates remain higher than in previous years, HSBC’s adjustment provides some relief for customers facing increased repayment costs.
The lender’s broader strategy includes enhancing mortgage accessibility for international applicants. By aligning UK mortgage policies with the needs of overseas buyers, HSBC aims to strengthen its position in the property finance sector.
Broader Eligibility for International Borrowers
HSBC has significantly expanded access to its mortgage products by loosening restrictions on non-UK residents. Previously, mortgage applicants needed both borrowers on an application to hold ILR or EU settled status.
Under the new rules, only one applicant must meet this requirement, allowing mixed-status households to apply more easily.
The bank has also increased the maximum LTV for international borrowers under specific conditions:
- For applicants with ILR, the LTV has risen from 75% to 95%.
- For those without ILR but who have lived in the UK for over a year or earn at least £75,000 (sole applicants) or £100,000 (joint applications), the LTV has increased from 75% to 85%.
- Gifted deposits are now accepted for applicants with ILR, providing additional support for first-time buyers.
These policy shifts make HSBC’s mortgage offerings more competitive, particularly for international professionals and expatriates seeking to enter the UK housing market.
By broadening eligibility criteria and reducing financial barriers, the bank aims to attract a wider pool of buyers, reinforcing its role as a leading mortgage provider for global customers.
