HSBC reduces buy-to-let stress rates

HSBC UK has announced a reduction in its buy-to-let affordability stress rates for domestic customers.

The change means landlords can borrow up to 10% more with HSBC, for example:

- A landlord wants to borrow £184,000 at 80% LTV to remortgage their buy-to-let property. With the rental income of £1,290 a month, lending of £165,000 would be available under the previous stress rates. From today, under the new stress rates the same property would allow the landlord to borrow the full amount of £184,000 – an increase of 10% 

- A landlord wants to borrow £280,000 at 70% LTV to remortgage their property. With the rental income of £1,814 a month, lending of £254,000 would be available under the previous stress rates. From today, under the new stress rates the same property would allow the landlord to borrow the full amount of £280,000 – an increase of 9%. 

This easing of stress rates follows the launch of 80% LTV mortgage products in March 2025 and the launch of top slicing in October 2025, which enables landlords with rental income shortfalls to use personal income to support affordability. 

The latest policy update also includes reduced and simplified stress rates across the range, including on the 80% LTV proposition, helping support lending for energy-efficient properties. 

Oli O’Donoghue, head of mortgages at HSBC UK, said: “I’m pleased that we’ve been able to reduce our buy-to-let affordability stress rates to better support UK landlords. By lowering stress rates, we are helping more landlords enter or remain in the buy-to-let market.

“This supports access to quality rental homes and housing affordability more broadly. Lowering barriers to finance, and easier refinancing options, can help landlords manage costs, supporting greater stability in the rental sector.”