0:01 AM, 7th January 2026, About a month ago
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HSBC UK has lowered its buy to let affordability stress rates for domestic borrowers; a move it says will widen access to finance and help stabilise rental supply during a period of persistent cost pressure.
The lender said the adjustment would give landlords greater flexibility when refinancing or raising additional borrowing, improving choice across the market while still operating within responsible lending boundaries.
Under its new approach, a landlord seeking £184,000 at 80% LTV with a monthly rent of £1,290 would previously have been capped at £165,000.
Now, the full £184,000 is achievable, representing a 10% uplift.
At 70% LTV, a borrower targeting £280,000 supported by rent of £1,814 would have been limited to £254,000.
That ceiling now rises to the full £280,000, an increase of 9%.
HSBC UK said the recalibration forms part of a broader strategy aimed at supporting the private rented sector, easing affordability constraints without loosening credit discipline.
The change builds on earlier policy shifts, including the launch of 80% LTV buy to let products in March 2025 and the introduction of top slicing in October 2025, allowing personal income to offset rental shortfalls.
The latest update also simplifies stress testing across the range, including at higher LTVs, with a focus on supporting lending for more energy-efficient homes.
Its head of mortgages, Oli O’Donoghue, said: “By lowering stress rates, we are helping more landlords enter or remain in the buy to let market.
“Lowering barriers to finance, and easier refinancing options, can help landlords manage costs, supporting greater stability in the rental sector.”
Meanwhile, LendInvest Mortgages has kicked off 2026 with a tranche of new incentivised buy to let products, offering either £400 cashback or a free standard valuation on five-year fixed deals at 75% LTV.
Brokers and their clients can choose between a 5% fee product priced at 4.84% or a 2% fee option with an initial rate of 5.49%, giving landlords flexibility to balance upfront costs against headline pricing.
The launch follows a recent overhaul of LendInvest’s BTL criteria, which removed minimum income requirements and expanded large MUFB lending to 20 units.
It also set a minimum unit size of 25 sqm and opened lending to expat borrowers in individual names.
The lender’s sales director, Paula Mercer, said: “With industry forecasting another increase in BTL lending in 2026, we’re pleased to offer these new incentivised products that will provide more options for brokers and their landlord clients.
“From no minimum income requirement across all of our BTL products to increasing Large MUFBs up to 20 units, we’ve reinforced that commitment.”
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