HSBC brings foreign national lending rules in line with UK nationals

HSBC UK has announced new changes to lending options for foreign nationals which could help borrowers access a broader range of mortgage options, including increased lending tiers through their mortgage broker. 

The enhancements will see HSBC standardise its lending rules to foreign nationals, in line with UK nationals, by offering up to 95% LTV tiers to any applicant with leave to remain in the UK or who has EU settled status. 

Under previous rules both customers applying for a mortgage had to have leave to remain in the UK or EU settled status. Now, just one customer on an application is required to have the status or leave to remain, in order to access the higher 95% lending tier.

A range of other changes will help support all foreign nationals seeking to purchase a UK property. This will include increasing LTVs from the current 75% to 85% for foreign nationals without permanent residency, but who can prove they have lived in the UK for a minimum of one year, or who have a minimum income of £75,000 per annum or a joint income of £100,000 per annum. 

The bank will also set out which types of visas are eligible to apply for a mortgage, making the criteria as clear as possible for new and existing customers. 

In addition, rules around borrowing for debt consolidation have been brought into line with domestic policy, both of which are subject to additional checks and controls. This means both UK and foreign nationals could apply for lending to help consolidate debt. 

Chris Pearson, head of intermediary mortgages at HSBC UK, said: “Helping our customers purchase a property is priority for us. We want to be as open and accessible as possible to all of our customers. 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.”