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HSBC increases buy-to-let loan-to-value to 80% and "offers a lifeline to some landlords"

Journalist: Riz Malik

ended 12. March 2025

HSBC has today announced immediate changes to its domestic buy-to-let offering, increasing loan-to-values (LTVs) up to 80%. However, key restrictions apply:

  • Maximum loan size: £400,000
  • EPC requirement: Property must be rated A-C
  • Let-to-Buy included in the offering
  • Booking fees cannot be capitalised if it results in exceeding 80% LTV

Newspage asked brokers if more lenders are likely to follow suit and expand into the 80% LTV buy-to-let space, whether this reflects growing lender confidence in the UK property market and the support moves like this could provide to landlords facing financial pressures. Views below.

8 responses from the Newspage community

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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
HSBC has helped landlords but limits linger. Their 80% loan-to-value move hints at growing market confidence but tight caps and EPC rules keep it selective. This will offer a lifeline to some landlords, but affordability remains a hurdle. Others may follow, but this isn’t a free-for-all—lenders are still playing it safe.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
An 80% offering will free up some prospective buyers' deposit money which may take the sting off the additional stamp duty they have to pay. This will be an attractive option for many as long as it’s priced reasonably. Buy-to-let lending has been hit hard recently and lenders need to innovate to compete, so it’s great to see HSBC taking a step forward.
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Ross LaceyVerified
Director & Independent Financial Adviser at Fairview Financial Management
This is a positive move from HSBC and will certainly open up some opportunities for landlords looking to minimise the amount of their capital needed. However, we see the restriction on the lending amount driven by the Interest Cover Ratio (ICR) for most landlords as being the biggest barrier. Many landlords we've worked with are borrowing at below even the 75% LTV level because the rental income on their properties isn't sufficient to meet the ICR requirements. An increased LTV will make the biggest difference to those with properties that are high-yielding, where it's more of a cash-flow play as opposed to investing in the property for the potential for capital growth.
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Aaron StruttVerified
Product and Communications Director at Trinity Financial
HSBC is clearly trying to boost the buy-to-let market and attract more landlords by reducing the deposit borrowers need to get an investment property. Quite a few lenders are offering 20% deposit buy-to-let rates at a time when many landlords are either exiting the market or switching to limited company buy-to-lets. The issue with these lower deposit rates is the rental stress tests: properties need to have really strong rental yields for the figures to stack up. If the rental income is not strong enough the requested mortgage loan size reduces and applicants will need to put down more of a deposit. Moneyfacts data recently showed there are currently a record number of buy-to-let rates being offered by banks and building societies. HSBC is offering some surprisingly cheap buy-to-let rates with two and five-year fixes at just over 4%. They do have larger arrangement fees but they also have some decent lower fee options.
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
HSBC’s move to expand buy-to-let lending to 80% LTV is a positive step, reflecting growing lender confidence in the market. With stricter affordability rules and higher rates squeezing landlords, increased LTV options provide much-needed flexibility, particularly for those looking to refinance or expand portfolios. The EPC A-C requirement aligns with the industry’s shift toward energy efficiency, but it may limit availability for landlords with older properties. Other lenders could follow suit, especially as competition picks up. However, the £400,000 loan cap means this won’t be a solution for all, particularly in high-value areas like London.
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Elliott CulleyVerified
Director at Switch Mortgage Finance
HSBC moving into the 80% LTV is a positive move for the industry, albeit a soft launch as the property will need to have at least a C EPC rating. There are landlords looking to enter the market at 80% LTV and the options were limited, so adding a new lender to the market is great news.
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Steve Humphrey0
Adviser & Founder at The Mortgage Pod
HSBC has been sourcing well on buy-to-let for some time, so this feels like an adjustment rather than a cause for concern. They’ve likely hit certain application or lending limits and need to price themselves out of the market. That being said, rate increases are never welcome—let’s hope we see other lenders reduce rates in the coming days to offset this increase.
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Sean Horton0
Managing Director at Respect Mortgages
It's good to see HSBC backing the buy-to-let sector with this 80% LTV offering. I think the £500,000 valuation limit is a mistake and too low. There are good quality properties above this cap and it won't benefit many landlords investing in the London postcodes. The rental market is robust so this move should spark competition, with other major lenders likely to follow suit. Many landlords need some additional flexibility after years of tax and regulatory changes squeezing their margins.