HSBC UK has cut its buy-to-let affordability stress rates for domestic customers in a move designed to boost landlord borrowing power and support rental market supply.
The bank says the changes will help landlords meet remortgage and additional lending needs during a period of sustained financial pressure across the property sector.
Under the new stress rates, a landlord remortgaging at 80% loan-to-value can borrow £184,000 on a property generating £1,290 monthly rent, up from £165,000 under previous criteria. This represents a 10% increase in borrowing capacity.
At 70% loan-to-value, landlords with £1,814 monthly rental income can now access £280,000, compared to £254,000 previously. This marks a 9% rise in available lending.
HSBC UK maintains the changes ease affordability constraints while preserving responsible lending standards. The adjustment forms part of a broader strategy to support the private rented sector.
The bank launched 80% loan-to-value mortgage products in March 2025, followed by top slicing in October 2025. Top slicing allows landlords facing rental income shortfalls to use personal income for affordability assessments.
The latest update also includes reduced and simplified stress rates across the range, with specific support for energy-efficient properties through the 80% loan-to-value proposition.
"I'm pleased that we've been able to reduce our Buy-to-Let affordability stress rates to better support UK landlords," said Oli O'Donoghue, head of mortgages at HSBC UK. "By lowering stress rates, we are helping more landlords enter or remain in the Buy-to-Let market."
The changes aim to improve access to quality rental homes and support housing affordability more broadly. "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," O'Donoghue explained.
The reduction in stress rates comes as landlords navigate increased regulatory requirements and evolving market conditions. HSBC UK positions the move as supporting sustainable growth in rental housing while helping landlords manage their property portfolios more effectively.
