HSBC cuts SVR and expands mortgage availability for international customers

HSBC UK is reducing its standard variable rate on residential mortgages from 6.99% to 6.74%, the bank’s lowest SVR since January 2023.

The lender is also expanding the availability of its mortgages to foreign national residents in the UK, by bringing lending rules for foreign nationals into line with UK residents for those who come direct to the bank. This follows similar changes to broker-originated mortgages in September 2024. 

Its standard policy requirements apply where just one customer on an application has indefinite leave to remain. This is a change from requiring both customers applying for a mortgage to have indefinite leave to remain in the UK or EU settled status.

This enables applications of up to 95% LTV where at least one applicant has indefinite leave to remain in the UK, up from 75% LTV. In addition, gifted deposits are now acceptable for consideration as part of the mortgage application, where at least one applicant has indefinite to remain. 
 
Where all applicants on an application do not have indefinite leave to remain, who are residing in the UK for one year or more, or earning £75,000 or more for a sole application / £100,000 or more for a joint application the changes include increasing the maximum LTV available from 75% to 85% LTV and allowing borrowing to be utilised for debt consolidation.

UK rates will also apply, whereas previously foreign national customers living in the UK less than 12 months would be subject to non-resident rates.

Oli O’Donoghue, HSBC UK’s director of mortgage lending, said: “We are firmly focused on helping people achieve their home ownership goals, including offering them great service alongside competitive rates. Following a review, we are reducing our standard variable rate to 6.74%, which will benefit those customers who have chosen to transition onto an SVR after their fixed rate term has finished.

“Our position as a truly international bank gives us a great insight into the wants and needs of international customers coming to the UK. Home ownership is a dream for many customers and that is also true for those moving to the UK, whether that is a longer-term or permanent move or something shorter-term and temporary. Aligning our UK policies to international customers who want to come to us direct for a mortgage will help more people achieve their home-buying aspirations.”