New lending rules apply to applications made through brokers
HSBC UK has announced changes to its mortgage lending rules for foreign nationals, aiming to expand access to higher loan-to-value (LTV) tiers through mortgage brokers.
The updated policy standardises lending criteria for foreign nationals with UK nationals, allowing applicants with leave to remain or EU settled status to access loans with up to 95% LTV. Previously, both individuals on a joint mortgage application were required to hold leave to remain or EU settled status to qualify for this higher lending tier. Now, only one applicant on a joint mortgage needs this status.
Additional changes include raising the maximum LTV from 75% to 85% for foreign nationals without permanent residency. To qualify, applicants must have lived in the UK for at least one year or meet minimum income requirements of £75,000 per annum for individuals or £100,000 for joint applicants.
HSBC – one of the UK’s largest mortgage lenders – is also clarifying the types of visas that are eligible for mortgage applications, aiming to make the criteria more transparent for both new and existing customers.
Furthermore, rules for borrowing to consolidate debt are being aligned with those for UK nationals, subject to additional checks and controls. This allows both foreign and UK nationals to apply for debt consolidation loans.
The new lending rules, which apply to applications made through mortgage brokers, take effect starting this week.
“We want to be as open and accessible as possible to all of our customers,” said Chris Pearson, head of intermediary mortgages at HSBC UK. “Our enhanced mortgage lending policies for foreign nationals reflects our commitment to supporting those on their journey to property ownership, by ensuring they have the financial tools necessary to invest in a UK property.”
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